Business

If 2024 was the year when artificial intelligence dominated the headlines, then 2025 has been the year of the cyberattack. From luxury fashion houses to high-street retailers and car manufacturers, businesses across the UK and beyond have found themselves under siege from hackers.

The scale, frequency and audacity of these attacks raise urgent questions about how well user data is being protected – and what risks lie ahead for millions of consumers.

The biggest breaches of 2025

Perhaps the most high-profile attack came this summer when Jaguar Land Rover (JLR) was forced to halt global production after hackers crippled its IT systems. The incident left thousands of workers temporarily stood down, dealerships unable to service vehicles, and suppliers facing cash-flow crises. Investigations later confirmed that “some data” had been affected, with regulators notified. While JLR has yet to specify if customer records were included, the disruption underscored how dependent modern manufacturers are on interconnected digital infrastructure – and how vulnerable that leaves them.

In retail, Kering, the French parent company of Gucci, Balenciaga and Alexander McQueen, admitted in June that hackers had stolen personal data linked to as many as 7.4 million email addresses. Shiny Hunters, the cybercriminal group claiming responsibility, released a sample of records showing not just names and contact details but also the total amount customers had spent. Some victims were flagged as spending upwards of $80,000, raising fears that high-net-worth individuals could be targeted for further fraud or scams.

Luxury brands weren’t the only ones hit. Marks & Spencer, Harrods and the Co-op all confirmed incidents earlier this year, forcing online and in-store operations offline. Even when financial details weren’t compromised, personal identifiers such as email addresses, order histories and loyalty scheme records were exposed – highly valuable information for criminals running phishing campaigns.

And it wasn’t confined to retail. The financial services sector also reported breaches, with mid-sized lenders and fintech platforms warning customers about attempts to access online accounts. Each case might appear isolated, but taken together they point to an alarming trend: cyberattacks are now routine, not rare.

What hackers want – and why user data is so valuable

For most attackers, the motivation is financial. Groups like Shiny Hunters typically steal large datasets and then ransom them back to the company, demanding payment in cryptocurrency. If the ransom isn’t paid, the data may be sold on the dark web, where criminals trade in email addresses, phone numbers and behavioural data.

Even without bank details, this information is potent. With a customer’s contact details and knowledge of their shopping or spending habits, criminals can craft convincing phishing emails or texts. High-spending customers are particularly attractive targets, as the Kering case illustrated. A fraudster who knows you spent £10,000 in a single transaction has a better chance of tricking you with a fake refund email than one casting a generic net.

The other motivation is disruption. In the case of Jaguar Land Rover, the attack brought production lines to a standstill. For hackers, this can be a way of demonstrating power, inflicting reputational harm, or forcing a company into paying a ransom simply to get back online.

Why 2025 has been so bad

Several factors explain the surge in successful cyberattacks this year.

First, the volume of personal data being collected and stored has grown exponentially. Retailers, carmakers and banks all rely on vast CRM systems to understand customer behaviour, personalise offers and drive sales. That makes them rich hunting grounds.

Second, geopolitical tensions have created an environment where hostile state-linked actors are more active. UK cyber experts have repeatedly warned that international conflicts are spilling into cyberspace, with attacks on infrastructure and businesses used as tools of leverage.

Third, despite improvements in security, many organisations remain under-resourced or over-confident. Too often, investment goes into protecting the most obvious assets – like payment card numbers – while overlooking other valuable datasets such as loyalty programme histories or purchasing records. As cyber lawyers point out, under UK GDPR the principle of “data minimisation” requires firms to only store what they truly need. Too many continue to hoard data indefinitely, increasing the scale of potential breaches.

What it means for UK consumers

For individuals, the lesson of 2025 is sobering: assume your personal data has already been compromised at some point. With so many large-scale breaches, it is statistically likely that your email address, phone number or purchase history is in circulation.

That doesn’t mean panic is necessary, but it does mean vigilance is. Consumers should:
• Be sceptical of unexpected messages, especially those claiming to be from luxury brands, banks or retailers.
• Use strong, unique passwords across accounts, and enable two-factor authentication wherever possible.
• Monitor financial and loyalty accounts for unusual activity. Even if criminals don’t have your card number, they may attempt to exploit rewards programmes or request refunds.
• Act quickly if notified of a breach – change passwords, review recent transactions and follow any advice provided by the company.

Perhaps most importantly, don’t dismiss non-financial data as harmless. A breached email address linked to your shopping history can be weaponised in highly targeted scams.

The road ahead

Regulators are already circling. The Information Commissioner’s Office (ICO) has been notified of several incidents and will expect companies to demonstrate that they had appropriate security and response measures in place. Meanwhile, policymakers are considering whether tougher disclosure rules are needed to ensure the public understands the scale of attacks.

For businesses, the wake-up call is clear. Data is both an asset and a liability. Investing in cybersecurity, minimising unnecessary data storage and being transparent when breaches occur are not optional extras – they are essential for protecting reputation and customer trust.

As for consumers, the spate of attacks in 2025 is a reminder of the double-edged nature of our digital lives. Convenience and personalisation come at the cost of handing over more personal data than ever before. The challenge now is to ensure that the systems designed to protect that data can keep pace with those trying to steal it.

Because if 2025 has shown us anything, it’s that cybercriminals are no longer at the gates – they are already inside.

What to do if you think your data has been breached

Top five steps UK consumers can take if their data has been breached

Change your passwords immediately

Update any login credentials connected to the affected service. Use a strong, unique password and activate two-factor authentication if available.

Monitor your accounts

Keep a close eye on bank statements, online accounts, and loyalty schemes for any unusual activity. Criminals may target store credits, refunds, or loyalty points as much as cash.

Be alert to phishing attempts

Fraudsters often use stolen data to send convincing fake emails or texts. Don’t click on suspicious links or share more personal details without verifying the source.

Check if your email is on the dark web

Services like Have I Been Pwned allow you to check if your email address has been involved in previous breaches. This can help you understand your exposure.

Report and protect

If you believe your financial details are being misused, contact your bank immediately. Report suspected identity theft to Action Fraud, the UK’s national fraud reporting centre.

Remember: Even if only “non-financial” data such as your name, address or purchase history is compromised, it can still be exploited in scams. Treat every breach notification seriously.

Read more:
Cyberattacks 2025: Millions of UK users exposed in year of hacks — here’s what it means for your data

Tesla shares have surged almost 50% since the company was rocked by a very public clash between CEO Elon Musk and US President Donald Trump in June.

On June 5, 2025, the feud sent Tesla stock tumbling 14% in a single session, wiping $150 billion off its market value. The sell-off drove shares to an intraday low of $284.70 amid fears that Musk’s political fallout with Trump could dent the company’s growth prospects.

Instead, the episode marked the start of a three-month rally. By September 16, Tesla closed at $421.62, representing a 48% gain from the June nadir. For context, a $1,000 investment at the June 5 low would now be worth around $1,481.

Insider confidence: Musk’s $1 billion open-market purchase of Tesla stock in mid-September proved pivotal. It was his first such move since 2020, a signal that reassured investors and accelerated the rally.

Operational delivery: Tesla’s Q2 results confirmed 410,000 vehicles produced and 384,000 delivered, alongside a record 9.6 GWh of energy storage deployed. Analysts said the figures demonstrated resilience across Tesla’s energy division, even as EV demand softened.

Narrative shift: Through July and August, Tesla made progress on its full self-driving (FSD) and robotaxi roadmap. Limited rollouts expanded beyond Austin, with activity reported in Las Vegas, boosting the bullish case for Tesla’s software and autonomy “optionality”.

Markets initially priced in political risk within hours of the Musk–Trump spat, fearing regulatory retaliation or cancelled contracts. Yet within a day, the panic subsided. Shares began to recover on June 6, closing around $295 and establishing the baseline for the summer rally.

By mid-September, the political fallout had been overtaken by operational performance and Musk’s vote of confidence via his own wallet.

For now, the scorecard suggests Musk has weathered the political storm. As one analyst put it: “The tape tells you what matters. Execution is winning out over theater.”

Read more:
Tesla stock surges nearly 50% since Elon Musk’s spat with Donald Trump

Cyber criminals have stolen the personal details of potentially millions of Gucci, Balenciaga and Alexander McQueen customers in a ransomware attack on their parent company, Kering.

The luxury group confirmed that in April hackers gained “temporary access” to its systems and accessed customer records, though it insists no financial information such as card or bank details was stolen.

The compromised data includes names, email addresses, phone numbers, home addresses and the total amount customers spent in-store. The hacker behind the breach, who calls themselves Shiny Hunters, claims to hold data linked to 7.4 million email addresses, suggesting a similar number of victims.

Kering said affected customers had been contacted directly, though it has not disclosed how many people were impacted. Legally, companies do not need to make a public statement if they notify individuals individually, but the scale of the breach has raised alarm across the industry.

A small sample of the stolen data, shared with the BBC, included thousands of customer records showing spending habits. Some individuals had spent over $10,000, while others were flagged with totals as high as $86,000. Experts warned this could expose high-spending clients to targeted scams or phishing attacks.

Becky White, Senior Solicitor in Harper James’ Data Protection team, told Business Matters: “While no card or ID details were taken, the exposure of names, contact information and purchase history poses a serious risk. This type of data can reveal who your most valuable customers are, enabling cyber criminals to craft convincing phishing campaigns or target high-net-worth individuals for fraud.”

Shiny Hunters said they approached Kering in June demanding a Bitcoin ransom, but the company denies entering negotiations, saying it had followed law enforcement advice and refused to pay.

“In June, we identified that an unauthorised third party gained temporary access to our systems and accessed limited customer data from some of our Houses,” a Kering spokesperson said. “No financial information — such as bank account numbers, credit card information or government-issued IDs — was involved in the incident.”

Kering added that its IT systems had since been secured and regulators notified.

The breach occurred during a wave of cyberattacks on luxury retailers. Cartier and Louis Vuitton also disclosed customer data leaks earlier this year.

Shiny Hunters, also tracked by Google as UNC6040, has been linked to phishing-style intrusions on corporate Salesforce systems. The group has previously targeted technology firms and government contractors.

Google itself warned in June of attacks by the same collective, which it said tricked employees into handing over login details.

White said the Kering breach was “a wake-up call” for the sector: “Businesses often focus on securing payment details, but underestimate the value of other CRM data — from purchase history to loyalty activity. Under UK GDPR, companies are expected to practise ‘data minimisation’, collecting and retaining only what is strictly necessary.

Whether you’re a global fashion house or a local retailer, investing in robust security and transparent communication isn’t just a legal obligation — it’s how you protect customer trust and safeguard your brand reputation.”

As online sales and app-based retail continue to grow, the luxury sector has become a prime target for hackers, given its wealthy clientele and global customer databases.

Read more:
Millions of Gucci, Balenciaga and Alexander McQueen customer records ransomed in cyberattack

Inflation in the UK remained stuck at 3.8% in August, the highest level in 19 months, reinforcing expectations that the Bank of England will keep interest rates unchanged when it announces its latest decision tomorrow.

The Office for National Statistics (ONS) confirmed on Wednesday that consumer prices rose at the same pace as in July, broadly in line with forecasts from analysts and the Bank itself. While price growth has not accelerated, inflation remains nearly double the central bank’s 2% target and far above levels in the US and eurozone.

The figures will do little to ease pressure on chancellor Rachel Reeves as she prepares her first autumn budget, scheduled for November 26. With debt servicing costs rising and productivity forecasts expected to be downgraded by the Office for Budget Responsibility, Reeves is weighing up tax rises and spending cuts worth as much as £40 billion.

Acknowledging the difficult climate, Reeves said: “Families are finding it tough and for many the economy feels stuck.”

Services inflation, a measure closely watched by policymakers as it reflects domestic price pressures, slipped from 5% in July to 4.7% in August. Core inflation, which strips out volatile food and energy prices, also dipped, to 3.6% from 3.8%.

Grant Fitzner, the ONS’s chief economist, said airfares were the biggest downward contributor, rising by less than last year after a sharp July increase linked to the timing of school holidays. “This was offset by a rise in prices at the pump and the cost of hotel accommodation falling less than this time last year,” he added.

Food inflation, however, continued to climb, with grocery prices up 5.1% year-on-year, the fastest pace in 18 months. Rising costs of cheese, fish and vegetables all pushed household bills higher.

Yael Selfin, chief economist at KPMG UK, said the country had become an “outlier” compared to other advanced economies. “Since April, the rise in inflation has been driven largely by domestic policy choices, including the increase in employers’ National Insurance Contributions. These higher costs have been passed on by businesses to consumers, feeding through into higher headline inflation.”

Eurozone inflation has held at around 2% for much of the year, while US inflation picked up to 2.9% in August.

The Bank of England’s monetary policy committee is expected to leave interest rates at 4% on Thursday, maintaining its cautious stance. City economists believe policymakers will hold rates at this level for the rest of 2025.

Paul Dales, chief UK economist at Capital Economics, said: “We think the upside inflation risks are just too high for the Bank of England to cut interest rates [on Thursday] or, more significantly, at the following meeting in November.”

Other ONS data this week showed unemployment holding at 4.7%, its highest in four years, while wage growth is cooling. The latest earnings figure of 4.7% is likely to set the level for next year’s state pension rise under the triple lock.

The ONS is due to release fresh data on the public finances and retail sales on Friday, which will give further clues to the health of the economy.

The pound edged marginally lower after the inflation release, slipping 0.05% against the dollar to $1.36.

Read more:
UK inflation holds at 3.8% in August, piling pressure on chancellor ahead of budget

Women in the UK are on track to lose out on more than £93,000 in earnings over a 40-year career because of the gender pay gap, new analysis reveals.

Research by Instant Offices shows how inequalities between men and women in the workplace compound over time, leaving women with a significant lifetime shortfall that directly impacts pensions, savings and long-term financial security.

The average UK salary for full-time employees was £37,430 in 2024, up £2,467 on the previous year. Graduate starting salaries in 2025 are expected to average £31,000, though they vary widely depending on industry and region.

Salaries typically climb with age, peaking in the 40–49 bracket. The most striking jump comes when workers move from their 20s into their 30s, with average earnings rising by £7,696 in a single year.

Yet even at entry level, a gap exists. Men aged 18–21 earn on average £520 more per year than women. By the time employees reach their 40s, this disparity has grown to almost £3,000 annually — despite this being the peak earning decade for both genders.

The UK’s average gender pay gap stands at 9%, but it grows steadily throughout a career.

Men in their 30s earn £1,664 more per year than women on average.
By their 40s, the gap has widened to £2,756 annually.
In their 50s, women earn £3,484 less than male peers each year.

Over four decades, these small yearly gaps accumulate into a £93,392 lifetime shortfall. And that figure doesn’t even account for the knock-on effect of lower pension contributions, bonuses or investment opportunities. Factoring those in, the true cost likely exceeds £100,000.

Age range
Men’s average pay
Women’s average pay
Annual gap
Gap over bracket
Cumulative gap

18–21
£24,960
£24,440
£520
£2,080
£2,080

22–29
£33,176
£32,292
£884
£7,072
£9,152

30–39
£41,652
£39,988
£1,664
£16,640
£25,792

40–49
£45,552
£42,796
£2,756
£27,560
£53,352

50–59
£43,940
£40,456
£3,484
£34,840
£88,192

60–61
£38,636
£36,036
£2,600
£5,200
£93,392

The gender pay gap is not just a “moment-in-time” inequality. It shapes a woman’s entire financial trajectory, leading to reduced pension pots, less disposable income for investments, and greater vulnerability to financial shocks.

It also has wider economic consequences, reducing the total spending power and productivity of half the workforce.

Experts say meaningful change requires employers to act. Strategies include:

Conducting regular pay audits to ensure parity across roles.
Introducing transparent salary bands, so employees can see how they can progress.
Supporting career progression for women, through mentorship and fair promotion practices.
Offering flexible working and parental leave, helping women to balance career and caregiving responsibilities.
Monitoring recruitment and promotion practices to reduce bias.
Investing in professional development equally across genders.

While women can and should advocate for their worth, the onus is on employers to fix systemic imbalances. Without change, millions of women will continue to face a career-long financial penalty simply for being female.

As the analysis makes clear, tackling the gender pay gap is not just about fairness today — it’s about ensuring equality of opportunity, wealth and security over a lifetime.

Read more:
UK women risk losing £93,000 in lifetime earnings due to gender pay gap

Ocado has begun using zero-emission refrigeration units across its flagship double-deck trailer fleet as part of efforts to cut emissions and reduce costs.

The online grocer confirmed that Sunswap’s Endurance units — powered by batteries and solar panels — are now fitted to its double-deck trailers, keeping fresh and frozen produce chilled without using diesel.

Each Endurance unit eliminates diesel consumption completely, cutting up to 20.5 tonnes of CO2 per year and reducing operating costs by as much as 81% compared with traditional refrigeration. Integrated solar panels on trailer roofs provide supplementary energy, reducing reliance on grid charging and extending operational range.

Sunswap said the units can deliver up to 24 hours of frozen operation or two months of chilled operation from a single charge, ensuring reliable temperature control without the compromises often associated with sustainable alternatives.

The deployment, which began in July, supports Ocado’s target of achieving net-zero emissions across its value chain by 2040. The retailer’s commitments, validated by the Science-Based Targets initiative (SBTi), include cutting Scope 1 and 2 emissions by 42% by 2030.

Michael Lowe, chief executive of Sunswap, said: “We’re delighted that Ocado has chosen Sunswap’s zero-emission refrigeration technology. This deployment demonstrates that electric refrigeration can meet the operational requirements of major grocery retailers while supporting their sustainability goals.”

Ocado’s move reflects a broader trend in the logistics and retail sectors towards cleaner transport technologies, with retailers under increasing pressure to decarbonise operations and demonstrate progress towards net-zero pledges.

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Ocado rolls out Sunswap zero-emission refrigeration on double-deck trailer fleet

Susie Ma, the former Apprentice finalist who went on to build one of Britain’s biggest independent beauty brands, has rewarded herself with a £20 million payday after a stellar year for her Tropic Skincare business.

The 36-year-old entrepreneur, who bought back Lord Sugar’s 50 per cent stake in 2023, paid herself dividends totalling £18.2 million in 2024, with a further £2 million distributed in April this year.

The bumper payout followed a strong trading performance at Tropic, where pre-tax profits rose by more than 30 per cent to £8.7 million in 2024. Revenues also increased to £68 million from £62.3 million a year earlier, according to newly filed accounts.

Ma’s buyout of Lord Sugar marked one of the most successful outcomes from the BBC TV show. Sugar had initially invested £200,000 for half of the business after Ma appeared as a contestant in 2011. In April 2023, she struck a multimillion-pound deal to regain full control of the company, paying back the billionaire in stages. He resigned as a director shortly after the deal and later collected an £11 million dividend before fully exiting.

The move has allowed Ma to put her own stamp on Tropic’s future. “A cost saving review” improved gross margins last year, while inventories were cut by £1.2 million to £7.4 million. She also strengthened her senior management team to prepare for further expansion in 2025.

Founded in 2004 when Ma was just 15, Tropic began as a stall at Greenwich Market in London selling homemade body scrubs. Two decades on, it has grown into a £68 million turnover enterprise making nearly all its creams, lotions and serums in a purpose-built Croydon facility, where products are manufactured fresh daily.

The brand sells directly online and through more than 20,000 self-employed “ambassadors”, who each pay £198 for a starter kit of products. Ambassadors receive a commission of between 25 and 35 per cent on their sales, plus access to training and an online store.

The model has echoes of Avon’s door-to-door sales approach but is pitched firmly at the eco-conscious beauty market.

Tropic has also established itself as one of the UK’s most socially responsible beauty firms. The company pledges to donate 10 per cent of its profits to good causes, and in 2024 gave £615,000 to charities.

This included almost £300,000 for United World Schools, a charity providing education in some of the world’s poorest communities. The partnership has so far supported more than 160 schools overseas.

Ma, who was estimated to be worth £73 million in the 2024 Sunday Times Rich List, has described Tropic’s dual focus on profitability and purpose as central to its long-term success.

With full ownership now back in her hands and profits climbing, industry insiders expect her to push Tropic into new international markets while maintaining its reputation for fresh, sustainable, and ethically driven skincare.

Read more:
Susie Ma secures £20m payout as Tropic Skincare profits jump 30% after Lord Sugar exit

Microsoft has unveiled its largest ever UK investment, committing £22 billion over the next four years to build Britain’s biggest artificial intelligence supercomputer and expand its data centre network.

The announcement, timed to coincide with President Trump’s state visit, dwarfs other Big Tech pledges and forms the centrepiece of £31 billion in new US-led tech investment.

Half of Microsoft’s spend will go towards capital expansion, while the other half will bolster its UK operations, which already employ 6,000 people.

Brad Smith, the company’s president and vice chair, described the move as both a “vote of confidence” in Britain and a bid to deepen US–UK economic ties. Two years ago, Smith had publicly criticised Britain’s business climate after the competition watchdog temporarily blocked Microsoft’s Activision takeover. “The climate in London today is so much more hospitable to investment than it was a few years ago,” he told reporters, adding: “We’re focused on British pounds, not empty tech promises.”

Microsoft will partner with British data centre operator NScale to build the new supercomputer, which will run on 23,000 of Nvidia’s latest AI chips. Microsoft has guaranteed to purchase capacity, ensuring financial security for the venture.

At the same time, Nvidia confirmed it will allocate 120,000 of its GPUs to the UK – its largest European deployment to date – with half being the ultra-powerful Grace-Blackwell Ultra series. The GPUs will be distributed through US firm CoreWeave and NScale, with CoreWeave itself investing £1.5 billion in new UK capacity.

The hardware will underpin Stargate UK, a government-backed initiative designed to train next-generation AI models on British soil. The project mirrors the $500 billion US “Stargate” programme led by OpenAI and SoftBank. The UK version is a three-way partnership between Nvidia, NScale and OpenAI, which will use up to 31,000 GPUs by 2026 to run its top-tier models under UK data rules.

David Hogan, vice president of enterprise at Nvidia, said: “We have the right conditions for rapid AI growth and innovation in the UK. The only thing that’s been missing is infrastructure. This will truly make the UK an AI maker, not an AI taker.”

Google also revealed an extra £5 billion of UK investment, including support for its London-based DeepMind unit, while Salesforce pledged £1.4 billion and BlackRock £500 million for data centres.

Campaigners, however, have warned against allowing US companies to dominate Britain’s digital future. In a joint letter, 46 civil society and industry groups urged Prime Minister Sir Keir Starmer to defend copyright law, competition rules, and sovereign data sets. “The UK must not allow its digital future to be dictated by a small coterie of US Big Tech firms,” they said.

Despite the warnings, ministers are expected to hail the package as proof of Britain’s global appeal for technology investment and as a foundation for economic growth powered by AI.

Read more:
Microsoft commits £22bn to UK supercomputer as Big Tech unveils £31bn investment blitz

When ministers and tech executives hailed Microsoft’s £22 billion UK investment package, one project stood out from the dense jargon of “compute capacity” and “data infrastructure”: Stargate UK.

The name might sound like a science fiction franchise, but Stargate UK is in fact Britain’s most ambitious supercomputing initiative to date — a programme designed to provide the raw computing power needed to train the next generation of artificial intelligence (AI) models on British soil.

Stargate UK takes its name from Stargate, the $500 billion US project announced earlier this year by OpenAI and SoftBank. That American initiative aims to build an unprecedented network of AI data centres capable of hosting trillions of operations per second, fuelling the world’s most advanced generative AI.

Britain’s version is more modest in scale, but strategically vital. It is being positioned by the government as Europe’s largest AI supercomputer effort — a joint partnership between Nvidia, the US chipmaker behind the world’s most powerful AI processors; NScale, a British data-centre business; and OpenAI, the San Francisco-based creator of ChatGPT.

The government hopes that Stargate UK will secure Britain’s place as an “AI maker, not an AI taker”, ensuring British researchers, startups and industries have direct access to cutting-edge computing power rather than relying entirely on US or Chinese capacity.

AI models such as ChatGPT, Google Gemini or Anthropic’s Claude require astronomical amounts of computing power to train. This is provided by GPUs (graphics processing units), which can handle many calculations in parallel. Training a state-of-the-art model can take tens of thousands of GPUs running for months, consuming as much electricity as a small town.

Until now, Britain’s computing capacity has lagged behind. The government’s flagship Isambard-AI project, launched in 2023, was designed to run on around 5,500 GPUs. By comparison, Stargate UK is expected to scale up to 31,000 GPUs by 2026 — many of them Nvidia’s new Grace-Blackwell Ultra processors, among the most powerful AI chips in existence.

That leap would put the UK closer to global peers, offering a viable domestic platform for training advanced models in areas like finance, defence, life sciences and climate science, where sovereignty over sensitive data is critical.

The initiative is being structured around guaranteed demand. Microsoft has committed billions to Britain’s AI infrastructure and is partnering with NScale, while OpenAI is expected to be one of Stargate UK’s first anchor customers, potentially using up to 8,000 GPUs in early 2026 and scaling up sharply from there.

The idea is simple: by locking in customers in advance, the consortium makes it financially feasible to build data centres of this scale. Construction will be spread across multiple sites, with Cobalt Park in northeast England earmarked as a central hub. The area has been designated an AI Growth Zone, where planning approvals and energy connections are expected to be fast-tracked.

Why “sovereign compute” matters

AI has become not just an economic race, but a geopolitical one. Nations are vying to ensure they control at least some of the “compute” — the hardware and software capacity — needed to run large AI models. Without it, countries risk being locked into dependence on foreign suppliers, with sensitive data leaving national borders.

By hosting OpenAI’s most advanced systems in UK-based data centres, operating under British regulatory rules, the government hopes to guarantee that national security, defence and financial institutions can use these tools without compromising confidentiality.

David Hogan, Nvidia’s vice president of enterprise, summed it up: “The only thing that’s been missing in the UK is infrastructure. This will truly make Britain an AI maker, not an AI taker.”

The numbers underline the ambition. Microsoft has pledged £22 billion over four years, half of it for capital expansion. Nvidia is allocating 120,000 GPUs to the UK, its largest European deployment, with about half being the ultra-powerful Grace-Blackwell Ultra chips. CoreWeave, a US AI infrastructure firm, will also invest £1.5 billion to expand capacity in Britain.

Of these chips, about 60,000 are expected to go directly into the Stargate UK supercomputer. For context, that is more than ten times the capacity of Isambard-AI.

The potential payoff is significant: faster training of AI models, new breakthroughs in science, and thousands of high-skilled jobs in data-centre management, engineering and research.

The challenges ahead

Despite the fanfare, Stargate UK faces real hurdles.
• Energy demand: Data centres of this scale consume huge amounts of electricity. Google has already announced a partnership with Shell to stabilise clean energy supplies for its new UK centre, and Stargate UK will face similar scrutiny over its environmental footprint.
• Cost overruns: Building AI infrastructure is capital-intensive. Locking in customers like OpenAI helps, but delays or budget overruns could strain finances.
• Talent shortages: The UK will need more data scientists, engineers and technicians to run and maintain this infrastructure.
• Geopolitics: With President Trump pushing hard for US dominance in AI, Britain will need to balance partnership with Washington while ensuring domestic priorities are not sidelined.

The “Stargate” brand is symbolic. It references both the US project and the sense of entering a new era of computing, where AI is not just another software tool but an operating layer for the economy.

For ministers, the name conveys ambition: that Britain is not retreating from global competition, but stepping through its own “stargate” into a future powered by AI.

Stargate UK is not yet built, but if successful it will mark a turning point for Britain’s digital economy. It represents a bid to anchor world-class AI capacity on UK soil, reduce dependence on foreign compute, and keep Britain at the forefront of the next technological revolution.

As one government insider put it, “This is about sovereignty, science, and staying in the race.”

Read more:
What is Stargate UK? Britain’s new AI supercomputer project explained

Lynn Forester de Rothschild is preparing to sell her 20 per cent interest in The Economist, paving the way for the most significant change in the 182-year-old publication’s ownership since 2015.

The British-American financier, 71, has appointed investment bank Lazard to oversee the process, which remains at an early stage. The stake, made up of voting shares, could fetch as much as £400 million based on current valuations of the premium media group.

It would be the first major shake-up since Pearson sold most of its 50 per cent holding a decade ago. That move allowed Italy’s Agnelli family, through its Exor investment firm, to emerge as the magazine’s single largest shareholder, with a 43.4 per cent stake.

Forester de Rothschild, who married the late financier Sir Evelyn de Rothschild in 2000, inherited and built upon his holdings. Together they created EL Rothschild, a family office with investments spanning public companies, private firms and real estate.

Industry insiders suggest that likely buyers this time are high-net-worth individuals or family offices, as The Economist is typically viewed as a trophy asset with long-term value, rather than a vehicle for quick financial returns.

The Economist Group, which owns the weekly magazine, website, podcasts, the Economist Intelligence Unit and Economist Impact events business, employs 1,540 staff across 26 countries.

Last year, the group reported revenues of £369 million, up 3 per cent on the year before, with operating profits of £48.1 million. Subscriptions rose 3 per cent to 1.25 million, including an 8 per cent increase in digital-only customers.

The magazine’s reputation for independence and influence in global business and political circles means it attracts a loyal subscriber base and premium advertisers.

The sale will need to navigate The Economist’s unusual share structure, which is designed to preserve its editorial independence. Its equity is split into ordinary shares, “A” special shares, “B” special shares and trust shares.

The trust shares are held by independent trustees, whose mandate is to safeguard editorial freedom and approve significant corporate decisions.

Exor owns all of the “B” shares, giving it influence over board appointments, while there are more than 100 holders of “A” shares. Forester de Rothschild controls about 26.7 per cent of the total issued capital, including “A” and ordinary shares.

Critically, the rules prevent any one shareholder — or group acting in concert — from holding more than 50 per cent of the voting rights. That means her stake cannot simply be transferred to Exor or another single strategic player without trustee approval.

Forester de Rothschild has a long business pedigree, having founded US telecoms company FirstMark Communications in the late 1990s and served on the board of Estée Lauder. She has also played a prominent role in transatlantic philanthropy, including the Economist Educational Foundation.

Her decision to explore a sale is seen as part of a wider strategic review by EL Rothschild and The Eranda Foundation, which also owns shares in The Economist.

With Lazard appointed, the search for potential buyers is now under way. Any deal could reshape the balance of power at one of the world’s most influential business titles.

An Economist Group spokesperson said: “EL Rothschild and The Eranda Foundation are long-term investors, as well as generous supporters of the Economist Educational Foundation. They regularly conduct strategic assessments of their portfolio and evaluate potential opportunities. They are working constructively with the company on the eventual outcome.”
Neither Lazard nor EL Rothschild offered further comment.

If completed, the transaction would not only represent a rare chance to buy into one of the world’s most recognisable media brands but also signal the end of Lynn Forester de Rothschild’s two-decade stewardship of one of Britain’s most closely-guarded journalistic institutions.

Read more:
Forester de Rothschild to sell £400m stake in The Economist in biggest ownership shake-up in a decade