{"id":57514,"title":"Digital infrastructure spending nearly doubles since 2019 as AI impact debated","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-08-25T06:52:06+00:00","modified":"2026-08-25T06:52:06+00:00","canonical_url":"https://stockmark.it/digital-investment-nearly-doubles-since-2019-yet-ais-growth-contributi/","markdown_url":"https://stockmark.it/digital-investment-nearly-doubles-since-2019-yet-ais-growth-contributi.md","json_url":"https://stockmark.it/digital-investment-nearly-doubles-since-2019-yet-ais-growth-contributi.json","category":"AI","categories":["AI","Infrastructure"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2026/08/digital-infrastructure-spending-nearly-doubles-since-2019-as.png?fit=1536%2C1024&quality=80&ssl=1","format":"news","language":"en-GB","content":"Official figures indicate that business investment in digital infrastructure has nearly doubled over the past five years, rising from £6.3bn in 2019 to approximately £11.6bn in 2024. This significant increase follows a revision by the Office for National Statistics to its calculation methods, which now aligns UK data with standards used in other major economies. The updated estimates encompass a broader range of assets, including data centres, software for IT operations, cables, and other digital infrastructure components.\n\nThe ONS stated that while precise figures for data centre investment remain difficult to isolate due to asset grouping issues, the overall surge reflects the growing importance of such facilities. Between 2020 and 2025, buildings, software, and databases accounted for roughly 77.6 per cent of total digital infrastructure investment. In 2025 alone, spending on assets such as data centres and fibre optic cables is estimated to have reached £5.6bn, representing a 94 per cent increase since the start of the pandemic. Further growth is anticipated, with around 171 tracked construction projects by Barbour ABI potentially quadrupling current data centre investment levels by 2030.\n\nThese revisions were part of an effort to better monitor artificial intelligence related spending. Statisticians noted that business surveys suggest more than a third of firms with ten or more employees were adopting AI in 2026, a trend expected to drive further infrastructure investment. However, leading economists have expressed scepticism about whether AI is the primary driver of recent productivity gains, despite optimistic views that UK productivity is outperforming historical trends.\n\nAnalysts at the Resolution Foundation, Morgan Stanley, and the London School of Economics have separately argued that the UK is experiencing a productivity boom. The Resolution Foundation, relying on payroll data rather than the ONS labour force survey, estimates productivity has expanded by 1.1 per cent annually since late 2024, compared to the ONS estimate of 0.2 per cent. Morgan Stanley researchers reported private sector productivity growth of 1.8 per cent over a 12-month period in the second quarter.\n\nConversely, Pantheon Macroeconomics has warned clients that there is little evidence AI is increasing hourly output. Economists Rob Wood and Elliott Jordan-Doak noted that while adoption is rising, it has not led to material headcount reductions. They cited Bank of England survey data showing most businesses report no significant impact on staffing over the past three years. The Pantheon note added that the relationship between AI adoption and employment remains equivocal, with some roles being replaced while demand for others increases. Wood and Jordan-Doak concluded that while significant changes are occurring beneath the surface, recent productivity gains may not yet signal a sustained long-term trend."}