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OpenAI to offer UK data residency driven by government partnership

Published by Global Banking & Finance Review

Posted on October 22, 2025

2 min read

· Last updated: January 21, 2026

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OpenAI to offer UK data residency driven by government partnership
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By Paul Sandle LONDON (Reuters) -OpenAI will offer Britain's government and businesses an opportunity to store data in the UK from Friday, helping unlock the potential of AI for more companies and

OpenAI to offer UK data residency driven by government partnership

By Paul Sandle

LONDON (Reuters) -OpenAI will offer Britain's government and businesses an opportunity to store data in the UK from Friday, helping unlock the potential of AI for more companies and public services, Deputy Prime Minister David Lammy will announce on Thursday.

The plan, secured through OpenAI's partnership with the Ministry of Justice (MoJ), will enhance privacy and security as well as reinforcing resilience to cyber threats, the government said.

Led by Sam Altman, OpenAI upended the tech industry with the launch of ChatGPT, its AI chatbot in late 2022.

It signed a partnership with the British government in July to work together to use AI to improve public services.

Lammy, who will announce the sovereign capability at the OpenAI Frontiers event, said AI was already improving efficiency in the MoJ.

More than 1,000 probation officers would be equipped with Justice Transcribe, an AI tool that records and transcribes conversations with offenders, saving hours spent transferring notes into digital systems, he said.

"By adopting AI, we're cutting the burdensome admin and ensuring frontline staff can spend more of their time doing the things only humans can do – monitoring offenders and protecting the British public," he said.

OpenAI CEO Sam Altman said the number of people using its products in the UK had increased fourfold in the past year.

"It's exciting to see them using AI to save time, increase productivity, and get more done," he said.

UK data residency will be an option for customers using API Platform, ChatGPT Enterprise and ChatGPT Edu.

OpenAI's Matt Weaver, head of EMEA solutions engineers, said pilot projects in the MoJ had sparked interest from other departments.

"We expect adoption to accelerate now we've got the first deployment taking place," he said in an interview.

ChatGPT, which competes with Anthropic, Perplexity and others as well as big tech companies like Google and Microsoft, on Tuesday announced ChatGPT Atlas, an AI-powered web browser built around its popular chatbot.

Its arrival could accelerate a shift to AI-driven search as users seek tailored information rather than keyword-based results.

(Reporting by Paul Sandle; editing by William James)

Key Takeaways

  • OpenAI partners with UK government for data residency.
  • Enhances privacy and security for UK businesses.
  • AI tools improve efficiency in the Ministry of Justice.
  • UK data residency available for OpenAI's API Platform.
  • Interest from other UK departments in AI adoption.

Frequently Asked Questions

What is data residency?
Data residency refers to the physical or geographical location where data is stored and managed. It is important for compliance with local laws and regulations regarding data protection and privacy.
What is artificial intelligence?
Artificial intelligence (AI) is the simulation of human intelligence processes by machines, especially computer systems. It includes learning, reasoning, and self-correction capabilities.
What is a partnership in business?
A partnership is a business arrangement where two or more individuals share ownership and the responsibilities of managing the business. Partners share profits, losses, and liabilities.
What is cybersecurity?
Cybersecurity involves protecting computer systems, networks, and data from theft, damage, or unauthorized access. It includes measures to safeguard sensitive information and ensure system integrity.
What is an API?
An API, or Application Programming Interface, is a set of rules and protocols for building and interacting with software applications. It allows different software systems to communicate with each other.

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