Technology

UK’s new data residency move with OpenAI signals a shift towards digital sovereignty in AI

Tuesday, 28 October 2025 5:10AM UTC

The UK partners with OpenAI to enable data storage on home soil, aiming to boost privacy, cyber resilience, and domestic AI growth amid broader sovereignty ambitions.

OpenAI’s expanded partnership with the UK Ministry of Justice, which now includes the option for UK data residency, marks a pivotal advancement in the nation’s approach to digital and AI sovereignty. Set to take effect from October 24, 2025, this initiative will allow British government bodies and businesses to store artificial intelligence data on British soil. The move is designed to enhance privacy, strengthen cyber resilience, and bolster national data protections within the rapidly evolving AI landscape.

This development aligns with the UK government’s broader AI strategy aimed at accelerating innovation while safeguarding critical national interests. Deputy Prime Minister David Lammy underscored the practical benefits of AI adoption within public services, highlighting that over 1,000 probation officers already utilise AI tools like Justice Transcribe to automate transcription tasks, enhancing operational efficiency. OpenAI CEO Sam Altman noted a fourfold increase in UK usage of OpenAI’s tools over the past year, reflecting growing trust and reliance on these technologies across public and private sectors alike.

The introduction of local data residency reflects a broader ambition to reinforce digital sovereignty—defined not only by the physical location of data but also by the UK’s ability to maintain control and oversight over AI systems impacting its citizens and enterprises. Jonny Williams, Chief Digital Adviser for the UK Public Sector at Red Hat, emphasised that true sovereignty requires the capacity to understand, modify, and benefit from AI systems, beyond mere data storage. Williams warned of risks linked to dependencies on foreign AI infrastructure and highlighted the importance of policies enabling transparency, auditability, and resilience in AI deployment.

Integral to this debate is the choice of technological frameworks underpinning AI services. Williams advocated for an enterprise open-source model, praising it as a foundation that delivers both innovation and control, contrasting it with proprietary technology agreements. This approach allows continuous adoption of global innovations while fostering domestic capabilities, potentially fortifying the UK’s AI economy by reducing reliance on external vendors.

The partnership’s practical implications extend beyond data localisation. OpenAI’s technologies are already embedded in several UK government AI tools, including ‘Humphrey,’ an assistant designed to ease administrative burdens on civil servants, and ‘Consult,’ which streamlines processing of public consultation responses. The expansion of ChatGPT Enterprise access to civil servants under the Memorandum of Understanding with the Ministry of Justice exemplifies a concerted effort to blend AI adoption with governance frameworks that respect national policy and oversight requirements.

Furthermore, this collaboration is expected to catalyse investment in UK-based AI infrastructure and research. OpenAI has confirmed plans to increase its presence in the UK through expanded research and engineering teams, aiming to nurture the domestic AI ecosystem and fuel long-term economic growth.

However, debates continue about how best to strike a balance between tapping into cutting-edge international AI advancements and maintaining sovereignty. Ensuring that AI innovations remain explainable, auditable, and free from excessive external control remains a critical challenge for policymakers and industry leaders. The UK government’s approach reflects an ambition to position itself at the forefront of AI while embedding transparency and resilience into the national digital infrastructure.

In summary, the expanded OpenAI-Ministry of Justice partnership is a significant step towards bolstering the UK’s digital sovereignty, privacy protections, and public sector efficiency. Yet, experts highlight that achieving comprehensive sovereignty requires commitment to open standards, continuous oversight, and development of homegrown AI capabilities, ensuring the UK benefits holistically from the AI revolution without compromising autonomy.

📌 Reference Map:

Paragraph 1 – ^[1] (IT Brief), ^[2] (Reuters), ^[4] (gov.uk)
Paragraph 2 – ^[2] (Reuters), ^[7] (gov.uk)
Paragraph 3 – ^[1] (IT Brief)
Paragraph 4 – ^[1] (IT Brief)
Paragraph 5 – ^[1] (IT Brief)
Paragraph 6 – ^[3] (OpenAI), ^[5] (Computer Weekly)
Paragraph 7 – ^[6] (gov.uk)
Paragraph 8 – ^[1] (IT Brief)

Source: Noah Wire Services

More on this

https://itbrief.co.uk/story/openai-partnership-sparks-debate-on-uk-digital-ai-sovereignty - Please view link - unable to able to access data
https://www.reuters.com/legal/litigation/openai-offer-uk-data-residency-driven-by-government-partnership-2025-10-22/ - OpenAI has announced that, starting October 24, 2025, it will offer UK data residency options, allowing British government and businesses to store data locally. This initiative, stemming from a partnership with the Ministry of Justice, aims to enhance privacy, security, and cyber resilience. Deputy Prime Minister David Lammy highlighted the efficiency gains within the Ministry of Justice, citing the use of AI tools like Justice Transcribe by over 1,000 probation officers to automate transcription tasks. OpenAI CEO Sam Altman noted a fourfold increase in UK usage of OpenAI tools over the past year, indicating growing adoption of AI technologies in the country. The move aligns with the UK government's broader strategy to harness AI in public service delivery and economic growth. ([reuters.com](https://www.reuters.com/legal/litigation/openai-offer-uk-data-residency-driven-by-government-partnership-2025-10-22/?utm_source=openai))
https://openai.com/index/the-next-chapter-for-uk-sovereign-ai/ - OpenAI has expanded its partnership with the UK Ministry of Justice, providing civil servants with access to ChatGPT Enterprise and introducing UK data residency options. This agreement aims to enhance public service efficiency and supports the UK's AI Action Plan. OpenAI's technology is already in use across various UK government tools, including 'Humphrey,' an AI assistant for civil servants, and 'Consult,' which automates the sorting of public consultation responses. The introduction of UK data residency allows British customers and developers to store data within the UK, addressing local data protection preferences and requirements. ([openai.com](https://openai.com/index/the-next-chapter-for-uk-sovereign-ai/?utm_source=openai))
https://www.gov.uk/government/news/openai-to-expand-into-uk-data-hosting-after-major-growth-deal - The UK Ministry of Justice has partnered with OpenAI to enable UK businesses to store artificial intelligence data on British soil. This move aims to bolster national resilience and privacy protections for data generated and processed within the country. The partnership is expected to accelerate the adoption of AI tools across the public and private sectors, enabling organisations to comply with local data-residency requirements and potentially spurring investment in domestic AI capabilities and infrastructure. ([gov.uk](https://www.gov.uk/government/news/openai-to-expand-into-uk-data-hosting-after-major-growth-deal?utm_source=openai))
https://www.computerweekly.com/news/366633421/Ministry-of-Justices-OpenAI-deal-paves-way-to-sovereign-AI - The UK Ministry of Justice has signed a Memorandum of Understanding (MoU) with OpenAI to provide civil servants with access to ChatGPT Enterprise. The MoU includes the option of UK data residency for customers using the OpenAI API Platform, ChatGPT Enterprise, and ChatGPT Edu. OpenAI technology is being used across the UK government to provide artificial intelligence in several tools, including the Whitehall AI assistant, Humphrey, which has been designed to ease the administrative burden on civil servants. ([computerweekly.com](https://www.computerweekly.com/news/366633421/Ministry-of-Justices-OpenAI-deal-paves-way-to-sovereign-AI?utm_source=openai))
https://www.gov.uk/government/news/openai-to-expand-uk-office-and-work-with-government-departments-to-turbocharge-the-uks-ai-infrastructure-and-transform-public-services - OpenAI and the UK government have announced a strategic partnership to accelerate the adoption of artificial intelligence and help deliver on the goals of the UK’s AI Opportunities Action Plan. The partnership includes collaboration to explore adoption across both public services and the private sector, infrastructure development, and technical information exchange to drive AI-fueled growth in the UK. OpenAI confirmed its intention to increase its footprint in the UK, building out its research and engineering teams to deliver on the partnership arrangement. ([gov.uk](https://www.gov.uk/government/news/openai-to-expand-uk-office-and-work-with-government-departments-to-turbocharge-the-uks-ai-infrastructure-and-transform-public-services?utm_source=openai))
https://www.gov.uk/government/speeches/deputy-prime-minister-speech-at-the-openai-frontiers-conference - Deputy Prime Minister David Lammy announced at the OpenAI Frontiers Conference that OpenAI is expanding its UK data offer by introducing data residency, giving British customers and developers the option to store their data on servers in the UK. This initiative aims to strengthen digital resilience and boost the economy by ensuring data is stored under British laws, with British protections, and subject to British oversight. The move is part of the UK government's broader strategy to harness AI technologies for public service delivery and economic growth. ([gov.uk](https://www.gov.uk/government/speeches/deputy-prime-minister-speech-at-the-openai-frontiers-conference?utm_source=openai))

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: The narrative is current, with the earliest known publication date being October 22, 2025. ([reuters.com](https://www.reuters.com/legal/litigation/openai-offer-uk-data-residency-driven-by-government-partnership-2025-10-22/?utm_source=openai))

Quotes check

Score: 10

Notes: No direct quotes were identified in the provided text, suggesting potential originality or exclusivity.

Source reliability

Score: 7

Notes: The narrative originates from IT Brief UK, a technology news outlet. While it provides references to reputable sources, the outlet's overall credibility is not well-established, warranting caution.

Plausability check

Score: 9

Notes: The claims align with recent developments, including OpenAI's announcement of UK data residency options and the Ministry of Justice's adoption of ChatGPT Enterprise. ([gov.uk](https://www.gov.uk/government/news/openai-to-expand-into-uk-data-hosting-after-major-growth-deal?utm_source=openai)) However, the narrative's tone and structure may benefit from further scrutiny to ensure accuracy.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents current information with potential originality. However, the source's reliability and the need for further verification of claims suggest a medium level of confidence in its accuracy.

AI
UK Government
Data Sovereignty