American cloud computing firm CoreWeave has officially inaugurated its first two data centers in the United Kingdom, marking a significant expansion beyond its home market. This strategic move comes shortly after the company established its European headquarters in London and achieved a valuation of $19 billion following a substantial funding round. The new facilities, part of a £1 billion investment in the U.K., align with the government's efforts to enhance national AI capabilities. CoreWeave's transition from crypto mining to AI compute highlights the growing demand for specialized infrastructure to support advanced computational tasks.
The decision to establish these data centers in the U.K. underscores CoreWeave's confidence in the country's digital technology sector. The first center quietly commenced operations in Crawley last October, while the second hub opened in London Docklands in December. Both locations leverage Nvidia's Hopper GPUs, specifically designed for AI workloads. The company's pivot from cryptocurrency to AI compute reflects broader industry trends, as numerous startups are now capitalizing on the surge in demand for AI processing power. Notable competitors include FlexAI from France, Finland-based DataCrunch, and Nebius from the Netherlands.
Founded in 2017, CoreWeave initially focused on crypto mining but quickly adapted to meet the rising need for AI compute resources. The company has rapidly expanded its infrastructure, with plans to open 28 data centers by the end of 2024, including the two new U.K. hubs. Looking ahead, CoreWeave intends to build 10 more data centers in 2025, three of which will be located in Europe—Norway, Sweden, and Spain.
The launch of these data centers coincides with the U.K. government's announcement of a five-year investment plan aimed at boosting government-owned AI computing capacity and establishing "AI Growth Zones." This initiative, which includes private-sector contributions, aims to foster economic growth and improve efficiency through the use of AI technologies. The Chancellor of the Exchequer, Rachel Reeves, expressed optimism about this investment, emphasizing its importance for the U.K.'s digital future. CoreWeave's expansion into the U.K. represents a pivotal moment in the global race to develop robust AI infrastructure.
