£28.2 Billion on AI: Boom for England or a Bubble Workers Will Pay For?

Artificial intelligence is attracting extraordinary amounts of money.

Across the world, technology companies are spending hundreds of billions of pounds building data centres, buying advanced computer chips and developing increasingly powerful AI systems.

Artificial intelligence is attracting extraordinary amounts of money. Across the world, technology companies are spending hundreds of billions of pounds building data centres, buying advanced computer chips and developing increasingly powerful AI systems.

The Numbers Are Staggering

Alphabet, Amazon, Microsoft and Meta alone are expected to spend around $700 billion during 2026, according to Morgan Stanley estimates reported by Reuters. At the same time, AI-related global debt issuance is forecast to approach $570 billion this year as companies increasingly look beyond their own cash reserves to finance expansion. Much of this money is being poured into data centres, advanced computer chips, electricity infrastructure and the enormous computing capacity required to develop and operate AI.

England wants a share of that boom.

The British Government says five AI Growth Zones announced across the UK could bring £28.2 billion of investment and more than 15,000 jobs. Britain already has the largest pipeline of data centres in Europe, according to the Bank of England. In England, this could mean major investment in construction, engineering, energy, technology and infrastructure.

But there is another question we should be asking. What happens if the AI boom becomes an AI bubble?

AI Boom vs. Historical Tech Bubbles

There are similarities with the dot-com boom of the late 1990s. Technology valuations are high, spending is accelerating and investors are betting enormous sums on future growth that has yet to be fully delivered.

There are differences too. Many of today's technology giants are highly profitable businesses. Earlier in 2026, Fidelity found that major companies were still largely financing AI investment from their earnings rather than borrowing. It also calculated that today's seven largest technology companies were valued at around 28 times forward earnings, compared with approximately 66 times for the seven largest companies near the dot-com peak. So this does not necessarily mean a crash is around the corner.

But can the British government cannot afford to ignore the warning signs. AI is already beginning to change employment. Office for National Statistics research published in July found that most UK businesses using AI had not reduced their workforce. However, among businesses using AI specifically to improve their operations, 6 per cent reported reducing employee numbers.

That percentage may appear small, but we are still at the beginning of widespread AI adoption. The impact could be particularly important for administration, customer services, finance, retail, professional services and entry-level employment. At the same time, AI investment could create opportunities in construction, electrical engineering, cybersecurity, technology and data-centre operations. This is why trade unions must be involved now, not after jobs have disappeared.

Union Perspective on Technology and Employment

Stephen Morris, General Secretary of the Workers of England Union, said:

“Billions can be invested in artificial intelligence, but we must never forget the people whose work created the businesses investing that money. AI should improve working lives, not simply become a cheaper way of replacing workers. If greater productivity creates greater profits, workers deserve to share in that success through better pay, better skills and greater job security.”

The Workers of England Union believes technological progress should not be feared, but neither should it be accepted without question.

Workers need consultation before AI is introduced, proper training where jobs change and protection against technology being used simply to reduce headcounts, increase surveillance or intensify workloads. AI itself may not be a bubble. It could transform our economy just as the internet did. But £28.2 billion of investment means little to working people if the eventual dividend is fewer secure jobs. The real test of Britain's AI revolution will not be how many data centres we build. It will be whether the people of England benefit from them.

References: (Bank of England: Financial Stability Report, July 2026; Office for National Statistics: Artificial Intelligence in UK Businesses: 2023 to 2026, July 2026; Department for Science, Innovation and Technology: AI Growth Zones and UK AI infrastructure programme, 2026; Department for Science, Innovation and Technology: AI Adoption and Worker Skills Programme, June 2026; Fidelity Investments: 5 Signs of an AI Bubble to Watch For, February 2026; UK Parliament: Data Centres: Employment, Written Answer, 15 July 2026)

Key Takeaways

• £28.2 Billion Investment Projection: UK Government's five AI Growth Zones aim to attract £28.2 billion in capital and create over 15,000 jobs.
• Sustained Corporate AI Capital: Tech giants (Alphabet, Amazon, Microsoft, Meta) are projected to invest $700 billion in 2026, alongside $570 billion in global debt issuance.
• Early Workplace Displacements: ONS data indicates 6% of UK businesses using AI for operational improvements have already reduced headcount, primarily affecting administrative and service sectors.
• Demand for Worker Safeguards: WEU calls for compulsory consultation, retraining, and profit-sharing to ensure AI enhances productivity rather than undercutting job security.