To build a Gigawatt AI data center in 2025 is reported to cost $35bn [1]. If you're not going to build it to top specs, why even bother. Given that this is the UK, once all the bureaucracy is done, it'll be at least 50% more expensive.

A large business is estimated to use 50MWh at £14,706 a year [2]. It'll cost in excess of £300k per year just to run electricity, not that the grid has that in spare capacity [3]. It's completely in contrast to their green energy campaign.

Then, they don't even have any kind of contract actually in place:

> Asked about the terms of the contract that Nscale had signed to build the supercomputer by the end of this year, the government did not reply directly. Instead, it said that Nscale’s entire $2.5bn investment was “not a formal contract, rather an intention to commit capital”, and “may well include equipment and capital funding”.

There's not enough serious capital invested to get this off of the ground (or even to break ground seemingly). And then there are basic questions, like:

1. Why would build a data center that is supposed to create tonnes of jobs, in a location where it costs a lot to employ people?

2. Why would you outsource your data center if you live in the US or EU, when there are better options available locally? These data centers sure as hell won't be used by British companies because the government are crushing them with tax.

3. The energy cost is far too high compared to locations with nuclear or hydro electricity generation.

This whole thing stinks. I think it's a complete and utter lie.

[1] https://uk.investing.com/news/stock-market-news/how-much-doe...

[2] https://www.moneysupermarket.com/gas-and-electricity/busines...

[3] https://watt-logic.com/2025/01/09/blackouts-near-miss-in-tig...

Revealed: UK's multibillion AI drive is built on 'phantom investments'