Microsoft on Tuesday unveiled a plan to spend $30 billion in the UK over four years, with half of the amount going towards cloud computing and artificial intelligence infrastructure.
It is the largest of several pledges from US tech giants totalling $42 billion, announced as President Donald Trump arrived on a historic second state visit to the UK.
The UK and US governments also agreed co-operation over nuclear and space technology as part of the "Tech Prosperity Deal".
Microsoft said its investment marked the "largest financial commitment" it had made in the UK.
"We're committed to creating new opportunity for people and businesses on both sides of the Atlantic," Microsoft chief executive Satya Nadella said in a post on X.
"That's why today we announced a $30 billion investment in the UK over four years, including building the country's largest supercomputer."
Microsoft employs 6,000 people in the UK, where it runs several data centres, AI research outfits and video game studios, Nadella said.
Another key deal includes British firm Nscale partnering with OpenAI and chip giant Nvidia to establish a UK version of Stargate -- a large-scale AI infrastructure initiative.
Stargate, unveiled in January, aims to invest $500 billion in US AI infrastructure by 2029 and has announced plans for projects abroad in the United Arab Emirates and Norway.
Nvidia, working alongside UK firms, pledged to deploy 120,000 advanced GPU chips across the country.
Trump will be accompanied by a number of US tech CEOs when he meets with British Prime Minister Keir Starmer at his country residence on Thursday.
The tech investments come despite the Trump administration bristling at Britain's digital tax.
Trump has threatened new tariffs on companies he accused of targeting US tech firms.
Britain ranks highly for private AI investments over the past decade, though it lags far behind China and the United States, according to Stanford University's 2025 AI Index report.
Google on Tuesday said it was investing £5 billion ($6.8 billion) in the UK over the next two years to power the country's AI drive.
Britain and the US will also sign an agreement to speed up development of new nuclear power projects.
The partnership promises faster regulatory approval and several new private-sector investment deals for nuclear projects, as the UK strives to meet net-zero carbon emissions and energy security targets.
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