Does Britain miss the technological revolution?

The UK is home to one of the most concentrated concentrations of intellectuals on the planet. Its top universities and research capabilities attract talent globally – from Oxford and Cambridge’s centuries-old academic excellence to Imperial College London’s cutting-edge research, and groundbreaking startups like DeepMind (now Google-owned), Wayve’s autonomous driving technology, and Synthesia’s AI video generation.

It feels as if it is falling behind the AI and quantum computer race.

It begs the questions: Why is Britain struggling with maintaining its technological edge? And what are they doing to leapfrog ahead? Is the time too late now? Are we missing the infrastructure and the energy needed to drive forward?

Computing: The Next Frontier

To understand what’s at stake, consider quantum computing – a revolutionary technology that processes information in ways that make today’s most powerful computers look like pocket calculators. Quantum computers can solve certain problems faster than classical computers because they use “qubits”, or bits that can either be 0 (zero) or 1.

This isn’t a theory. Quantum computers can crack encryption systems in an instant, revolutionise drug development by simulating molecule interactions, optimize global supply chains instantly, and speed up climate modelling to solve the environmental crisis. The country that masters quantum computer first will enjoy unprecedented technological and economic benefits.

Two U Turns

The UK’s recent policy reversal shows the confusion that lies at the core British tech policy. In July 2024, the newly elected Labour government scrapped £800 million in funding for an exascale supercomputer at Edinburgh University.

But by June 2025, Chancellor Rachel Reeves performed a dramatic U-turn, restoring £750 million for the project. The timing was not coincidental. A few days later during London Tech Week, Prime Minister Keir-Starmer was on stage with Nvidia’s Jensen Huang.

Huang’s message was stark: “The UK has one of the richest AI communities anywhere on the planet… It’s just missing one thing. This is the biggest AI ecosystem without its own infrastructure.

The Great British Brain Drain

As the government struggled with funding supercomputers, a troubling trend began to emerge. Oxford Ionics is a quantum-hardware startup spun out from Oxford University. It agreed to an $1.1 billion acquisition by Maryland-based IonQ.

This sale brought back uncomfortable memories of DeepMind being acquired by Google in 2014. It highlighted a persistent issue: Britain excels in developing world-class technology companies, but struggles to scale these up domestically. The UK has become, critics argue, little more than a high-tech “nursery” – nurturing brilliant startups before watching them migrate overseas for growth capital and infrastructure.

Ashley Montanaro is the co-founder and CEO of Phasecraft, which develops quantum software. He warns, “Once talent, momentum, and capital go elsewhere, it’s rare that they return.” This warning highlights delays in the UK National Quantum Strategy launched two years ago.

The Energy Equation

Energy is the real challenge behind these policy battles. Goldman Sachs estimates that data centre power demand will grow 160% by 2030, with European data centres potentially consuming 287 TWh annually – equivalent to the entire electricity consumption of a medium-sized European country.

This is a perfect hurricane for the UK. Britain is less attractive to tech companies that require energy intensive operations because of high energy costs, grid constraints and massive power requirements for AI and quantum computing. The countries that have reliable and affordable energy infrastructure are the best choices for tech companies when deciding where to build their next data center or quantum lab.

Racing Against Time

Statistic: the US has two exascale machines, China two and Japan and France both building theirs. The US federal quantum funds are doubling, while the UK will not offer any new quantum funding before autumn 2025.

The funding gap goes beyond government investments. UK tech startups raise significantly less venture funding than their American or Chinese counterparts. British investor are typically more risk-averse than American investors and focus on near-term profit rather than ambitious long-term growth.

Human Cost

AI will eliminate many roles – but not the expected ones. AI excels in pattern recognition and cognitive tasks, so white-collar workers are at greater risk. Within years, basic diagnostics, financial analysis and legal research could all be automated.

There are many new jobs categories emerging: AI trainers and prompt engineers. Human-AI collaboration managers. The problem lies in the speed of transition and mismatch between skills.

Most tellingly, Geoffrey Hinton – the “godfather of AI” – recently joked on The Diary of a CEO podcast that plumbing might become the most future-proof career. While AI can diagnose issues, it cannot crawl under sinks and handle unpredictable physical challenges.

It is a great irony that knowledge workers with university degrees may be more affected than skilled tradespeople. The lawyer reviewing contract faces a greater AI threat than an electrician rewiring Victorian houses.

Priorities

The UK’s “quantum quandary” reflects questions about Britain’s technological ambitions. The country has world-class researchers, universities and startups. The country appears to be lacking the infrastructure, patient capital, political consistency, and infrastructure investment needed to transform intellectual excellence into sustained technology leadership.

While other nations invest billions in quantum research, AI infrastructure and energy systems, Britain is faced with a crucial choice: either invest in technologies that will define the next century or risk falling behind in the digital revolution.

The question isn’t whether the UK can afford to invest in its technological future – it’s whether it can afford not to.