UK urged to expand gas-fired power as Nvidia backs AI push

Britain faces a critical energy question as it seeks to position itself as an AI hub: Labour warned that gas-powered power stations will be needed to support new AI infrastructure, even as the government pursues Net Zero goals. Nvidia chief executive Jensen Huang said the United Kingdom can become an AI superpower, but he also acknowledged that electricity prices pose a near-term challenge. Huang is due to attend a Windsor Castle dinner tonight as part of U.S. President Donald Trump's state visit to Britain.

Speaking to a British audience and in interviews during the visit, Huang said he had 'every confidence that the UK will realise that it takes energy to build new industries' and that energy supply will be a determinant of AI growth. He said there will be 'a lot of motivation and incentives to want to bring more power to bear' and that sustainable power such as nuclear, wind, and solar should be supplemented by gas turbines. He noted that Prime Minister Keir Starmer had spoken with him earlier this summer and relayed an 'urgent request' for AI infrastructure to help turbocharge the UK economy. Huang also predicted that some AI companies would 'become power generators themselves' with on-site energy capacity, and that Nvidia would 'push just about every possible angle' to reduce AI's carbon footprint, including investments in small nuclear reactors and in energy-efficient computing systems.

As part of a US-UK tech deal struck at the start of Mr Trump's state visit, Nvidia has agreed to deploy 120,000 advanced processors across the UK to help the country's AI sector, Huang said. He called the arrangement a milestone in US-UK technology collaboration, saying, 'Today marks a historic chapter in US-UK technology collaboration.' He added that the UK stands in a 'Goldilocks position' where world-class talent, research and industry converge.

Policy context and energy goals add complexity to the promise. Labour has pledged to reach Net Zero by 2050 and decarbonise the electricity grid by 2030. Ed Miliband, Labour's Energy Secretary, has pledged a permanent ban on fracking and said no new oil and gas licenses in the North Sea would be approved as part of Labour's energy plan. AI systems require huge amounts of energy to power data centres, and countries around the world are scrambling to meet rising electricity demand. The comments come as the Labour leadership aims to balance climate targets with the need to attract investment in AI and digital infrastructure.

Taken together, the remarks underscore the tension between energy security and climate policy as Britain courts AI investment. The technology push could shape energy policy choices in the coming years, including how gas-fired capacity or on-site generation fits into a decarbonised grid. The collaboration reflects a broader global race to build AI capacity while managing electricity costs and emissions, even as Prime Minister Starmer navigates domestic debates over how fast to move away from fossil fuels.