Nvidia boss says UK may need gas turbines to power AI expansion, posing challenge to Labour's green goals

Jensen Huang, chief executive of chipmaker Nvidia, said the United Kingdom can become an "AI superpower" but that meeting the electricity demand of large-scale artificial intelligence infrastructure could require additional power capacity — including gas turbines — in the near term.

Huang made the remarks ahead of a state visit event in Britain and after discussions with Prime Minister Keir Starmer, saying electricity prices and available capacity were an "urgent" challenge for companies planning major AI deployments. He also announced a commitment by Nvidia to deploy 120,000 advanced processors across the UK as part of a US-UK technology agreement reached at the start of the state visit.

The comments, delivered as Huang prepared to attend a Windsor Castle dinner connected to the state visit, underscore tensions between the rapid electricity needs of AI data centres and the Labour government's climate commitments. Labour has pledged to reach Net Zero by 2050 and to decarbonise the UK's electricity grid by 2030, while Energy Secretary Ed Miliband has ruled out fracking and said the party would not approve new oil and gas licences in the North Sea.

Huang told hosts that sustainable sources such as nuclear, wind and solar would be central to powering AI development but said he was "also hoping that gas turbines are going to also contribute." He added that some AI companies might develop on-site power generation capacity and said Nvidia would explore a range of measures to reduce AI’s carbon footprint, including investment in small nuclear reactors and building more energy-efficient computing systems.

"We are at the Big Bang of the AI era — and the UK stands in a Goldilocks position, where world-class talent, research and industry converge," Huang said, while noting that higher electricity costs were a "challenge" in the "near term." He said he had spoken with Starmer earlier in the summer, describing an "urgent request" for infrastructure to help "turbocharge" the UK economy.

AI models and the data centres that run them consume large amounts of electricity, and governments internationally are grappling with how to provide reliable, affordable power while meeting climate targets. Dispatchable generation — capacity that can be turned on to meet demand spikes — is one option operators and industry leaders cite to ensure continuity as reliance on intermittent renewables grows. Gas turbines are among the faster-dispatching options available today.

Labour officials have emphasized their twin aims of industrial growth and decarbonisation, arguing that new industry investment must be compatible with climate commitments. The party's electricity decarbonisation target and its ban on fracking are designed to accelerate a shift to low-carbon power, but the government's plans also face practical questions about meeting variable and peak power demands posed by large data centres and other heavy users.

The tech agreement announced alongside the state visit aims to strengthen UK access to advanced AI hardware and expertise. The planned deployment of Nvidia processors is intended to accelerate domestic AI research and commercialisation, but it also raises questions about how to scale power infrastructure in line with ambitious deployment timelines.

Huang said Nvidia would "push just about every possible angle" to limit AI’s environmental impact, while acknowledging that the immediate need for reliable, cost-effective electricity could require a mix of energy sources. Ministers and industry leaders will need to reconcile those operational requirements with the government's climate objectives as the UK seeks to attract and host large-scale AI projects.