Business & Technology
One in five UK firms move AI workloads abroad over power costs
One in five British firms have moved AI workloads out of the UK because of high power costs, according to research commissioned by CUDO Compute, adding to concerns about the country’s ability to keep more AI activity on home soil.
The survey covered more than 700 senior AI decision-makers across the UK, US and Europe, including 200 in the UK. Among UK respondents, 33% said energy costs were limiting their ability to scale AI operations, while 43% said cost and performance outweighed sovereignty when deciding where to deploy AI.
The findings suggest the UK’s push for AI sovereignty is running up against infrastructure constraints. Businesses may want to keep workloads in domestic or regional markets, but power prices, available land and access to grid capacity are proving more decisive.
Geopolitics is also shaping deployment choices. Among UK respondents, 46% said geopolitical instability was pushing them to keep AI workloads within home markets, compared with 36% across the full sample.
Even so, commercial pressures remain strong. Almost a third of UK organisations (32%) said they were actively considering relocating workloads due to geopolitical pressures, while 45% said data sovereignty, regulatory compliance, or national security concerns were shaping their AI deployment strategy. At the same time, 31% said they were prioritising sovereign or regionally controlled compute even at a higher cost.
Where Workloads Go
When asked which markets looked most attractive for new AI cluster capacity, respondents ranked the US highest, with 72% viewing it positively. India followed at 62% and Eastern Europe at 58%.
Eastern Europe ranked ahead of Western Europe at 45% and the Nordics at 44%. China scored 55%, ahead of Latin America at 40%, the Middle East at 39%, Africa at 38% and APAC at 29%.
The pressure appears sharper for businesses that depend more heavily on compute. Among AI-first businesses, 32% said they would consider moving workloads overseas because of power costs, compared with 18% of enterprise organisations.
That gap suggests companies running the most demanding AI systems may be quickest to shift work to lower-cost locations when domestic operating conditions worsen. For policymakers, it highlights the challenge of matching AI ambitions with the industrial base needed to support them.
Infrastructure Strain
The findings reflect a broader issue in the AI market: infrastructure supply is constrained not only by access to chips and software, but also by physical requirements such as land, energy, cooling and grid access. In that context, electricity costs become a central part of the cost of compute.
CUDO Compute commissioned the research with Censuswide as part of its Land. Power. Compute report. Respondents included decision-makers responsible for AI workload and infrastructure decisions, budget input, vendor selection or active deployment planning. The sample included enterprise businesses with turnover above GBP £50 million and AI-first companies with turnover above GBP £1 million.
Matt Hawkins, chief executive of CUDO Compute, said the UK risked a widening gap between policy goals and operational reality if it did not address infrastructure constraints.
“AI sovereignty is being hotly discussed as a priority for UK organisations, but it only works if the infrastructure exists to support it,” Hawkins said. “What we are seeing is a growing tension between where businesses want to run AI and where they actually can.”
“AI is not abstract software. It is physical infrastructure that depends on power, land, cooling and grid access. When those constraints tighten, economics take over. If it is cheaper or easier to run workloads elsewhere, they will move, regardless of sovereignty ambitions.”
“Right now, every UK boardroom is talking about AI, but almost nobody is talking about the infrastructure needed to power it. Until we close that gap, there will continue to be a disconnect between policy, ambition and reality. The countries that solve this first will shape the future of AI, and the UK still has a window to lead, but it needs to act quickly.”
Business & Technology
Evri approved after Oxford Botley Road shop wins extension appeal
Nisa Local, which first opened in Botley Road in November, can now be extended after a Planning Inspector overturned Oxford City Council’s rejection.
The proposal is for a steel security shutter and a single-storey rear extension, which would provide more space for new services such as an Evri and two more Cook frozen meal freezers.
The Costa Coffee self-service machine is hoped to be on the front of the shop and will provide more floor space for Bake & Bite and the Oxford-based Natural Bread Company.
Oxford City Council refused permission in March arguing the extension would harm the character and appearance of the property.
Aejal Patel, Nisa manager (Image: Ben Hardy)
However, planning inspector Alexander O’Doherty concluded the impact on the wider area would be limited because the extension would be largely hidden at the rear from public view.
In his decision issued on July 23, the inspector acknowledged that the extension would have some harmful effect on the appearance of the building itself, but said the benefits outweighed that harm.
The inspector noted the shop is “clearly lacking in storage space” and said the additional floor area would help it better serve local residents.
The decision also referenced numerous representations from supporters, with the inspector saying these lent “considerable credence” to the benefits of the scheme.
He added that providing these services within a residential area would encourage walking, cycling and the use of public transport by reducing the need for residents to travel elsewhere by car.
Business & Technology
Witney sweet shop announces closure ‘with heavy heart’
Grumpys Sweet Shop in Fettiplace Road, which operated as a cafe and collectibles shop until it became a sweet shop in 2023, has announced it will close by the end of August.
A statement from the team behind the shop said the ‘difficult decision’ was taken with a ‘heavy heart’.
The final day trading would be Friday, August 28.
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The statement said: “This hasn’t been a decision we’ve taken lightly.
“Like so many families and small businesses, we’ve felt the impact of the rising cost of living, and the increasing costs of running a business have made things more challenging than ever.
Sweets (stock photo) (Image: Timm Bursch / Unsplash)
“On top of that, our current lease has came to an end.
“Renewing it would mean committing to another seven years, and after a great deal of thought, we’ve decided that this is the right time for us to close this chapter.
“While we’re incredibly sad to say goodbye, we’d love to see as many of you as possible before we close.
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“From the bottom of our hearts, thank you for making Grumpy’s Sweet Shop so much more than just a business.
“You turned it into a place filled with smiles, laughter, and wonderful memories that we’ll treasure forever.”
The owners added that ‘everything you see in the shop’ is now for sale, and offers will be considered for all fittings and displays.
Business & Technology
£7 billion East West Rail Oxford to Milton Keynes row reignites
The dispute that halted the much-anticipated introduction of new trains to Milton Keynes looked to be coming to be coming to an end.
The Government has been pushing for ‘Driver-Controlled’ or ‘Driver-Only Operation’—a cost-saving method introduced widely on London commuter lines in the 1980s, a move widely condemned by trade unions.
The Department for Transport’s (DfT) plan for trains to be staffed by a driver and a customer service inspector seemed to solve the dispute.
But this did not meet the The National Union of Rail, Maritime and Transport Workers (RMT)’s demands.
The union has been opposing plans to use driver-only trains between Oxford and Milton Keynes Central.
Although the line between Bicester and Bletchley has technically been open since 2024, it has only been used by freight, charter, and test trains.
Chiltern Railways was chosen as the operator and has been advertising for customer service inspectors, instead of guards.
However, these inspectors would not be considered ‘safety-critical,’ meaning the driver would be responsible for opening and closing the doors.
Chiltern Railways stated it has made significant progress in preparing for the line to open to scheduled passenger trains, but no date has been announced.
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East West Rail Action Group protesting outside Bletchley station (Image: Diana Blamires)
The company said it is continuing to work closely with the The Department for Transport, trade unions, and industry partners.
The National Union of Rail, Maritime and Transport Workers general secretary Eddie Dempsey insisted on the necessity of a guaranteed safety-critical second person aboard trains, citing their essential role in handling a wide range of duties and responding appropriately to ‘dangerous and fast-moving’ situations.
He said: “We need a clear commitment from Chiltern that East West Rail services will not be Driver Only Operation and that a second safety-critical member of staff will be guaranteed.”
Chiltern Railways is set to be renationalised on September 20, when it will be taken over by DfT Operator in preparation for Great British Railways.
45 drivers have been recruited for the new service, but no guards.
The project delays have already taken a significant financial toll.
Six two-carriage trains have accumulated £2.6m in costs due to delays in their lease.
Currently idle in a Bletchley depot, these units are costing the Department for Transport money without generating any fare income.
The Government previously said trains from Oxford to Milton Keynes are being lined up to appear in the December rail timetable.
In a written statement, rail minister Lord Peter Hendy said: “Chiltern worked with Network Rail, the Department for Transport and other operators on the December 2026 timetable and services have been timetabled between Oxford, Winslow, Bletchley and Milton Keynes.”
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