The UK Government’s decision to withdraw funding for the University of Edinburgh Exascale Supercomputer is a major blow to Edinburgh’s ambition to be a global centre of excellence in data, AI and emerging technologies, according to Scottish Financial Enterprise CEO Sandy Begbie.
The £800 million investment was set to be a huge boost to Scotland’s digital capabilities, driving investment and growth in sectors like financial services, which are increasingly focused on technology, Begbie said.
The University of Edinburgh has already spent £31 million on the project.
The future of the Edinburgh Exascale Supercomputer is now unclear.
“Scotland’s financial services industry has the potential to add between £4bn – £7bn to the Scottish economy over the next five years, but in order to achieve this, investment in our universities and our digital capability is vital,” said Begbie.
“Other major financial centres are investing in this area and this decision runs the risk of us losing ground and future investment …
“At a time when our universities are under increasing financial stress, this decision will add to a feeling of uncertainty which is holding back our higher education sector and the broader economy.”
The new Labour UK government has shelved £1.3 billion of funding promised by the previous Conservative administration for tech and Artificial Intelligence (AI) projects.
It included £800 million for the creation of the exascale supercomputer at Edinburgh University and a further £500 million for AI Research Resource, which funds computing power for AI.
The UK’s Department for Science, Innovation and Technology (DSIT) said the money was promised by the previous administration but was never allocated in its budget.
DSIT defended its actions. It said: “The government is taking difficult and necessary spending decisions across all departments in the face of billions of pounds of unfunded commitments.
“This is essential to restore economic stability and deliver our national mission for growth.”
A University of Edinburgh spokesperson said: “The University of Edinburgh has led the way in supercomputing within the UK for decades, and is ready to work with the government to support the next phase of this technology in the UK, in order to unlock its benefits for industry, public services and society.
“Professor Sir Peter Mathieson, principal of the university, has now met with the Secretary of State for science, innovation and technology and the Secretary of State for Scotland and we welcome the continued dialogue on this vital issue.”