13th November 2026
A new generation of technology companies is attracting enormous investment, expanding at extraordinary rates and changing the way businesses operate. One of the most striking examples is Databricks, an American company whose recent valuation reached $134 billion.
Most people will never have heard of it, yet its business illustrates where much of the world's technology investment is now going. It is also a reminder that the artificial intelligence revolution is about much more than ChatGPT, robots and computer software. Behind the applications people see is a vast and rapidly expanding industry providing the infrastructure that makes them possible.
So what exactly does Databricks do, why is it attracting so much money, and what does this mean for Britain and Scotland?
Understanding Databricks
Founded in 2013 by researchers associated with the University of California, Berkeley, Databricks specialises in helping organisations manage, analyse and make use of enormous quantities of information.
Consider a large supermarket. It collects information from tills, online orders, warehouses, delivery vehicles, suppliers, customer loyalty schemes and staff records. Much of this information traditionally sits in separate computer systems.
Databricks provides technology that brings these different sources of information together, allowing businesses to analyse them and increasingly use artificial intelligence to make predictions and improve decisions.
A supermarket might use the technology to forecast demand, reduce food waste, manage stock levels and identify changing shopping habits.
Banks can use similar systems to identify suspicious transactions, manufacturers to predict when machinery needs maintenance, and hospitals to analyse information and improve the organisation of services.
In simple terms, Databricks sells the tools that allow businesses to turn vast quantities of information into something useful.
It is not primarily a consumer technology company. Its customers are other businesses and organisations.
Why is it attracting so much investment?
The figures are remarkable.
In February 2026, Databricks announced that its annual revenue run-rate had passed $5.4 billion, representing growth of more than 65% over the previous year.
It also announced more than $7 billion in new investment and financing, including approximately $5 billion in equity investment at a company valuation of $134 billion, alongside an additional $2 billion in debt capacity.
The company also reported that its AI products had reached a revenue run-rate of $1.4 billion.
These figures help explain why investors are so interested. Businesses increasingly want to introduce artificial intelligence, but before they can do that effectively they need properly organised information, suitable computer systems and the ability to process huge amounts of data.
Databricks believes it can provide much of that foundation.
Its growth is not simply based on promises. It has thousands of business customers and reports positive free cash flow over the previous 12 months. Nevertheless, the investment figures and valuation should be treated separately from the company's actual profits and financial performance.
A new generation of technology giants
Databricks is not alone. It belongs to a much wider technology industry in which companies are competing for different parts of the expanding AI market.
Nvidia supplies the powerful computer chips used to train and operate many AI systems. Microsoft and Amazon provide cloud computing infrastructure, allowing businesses to rent computing capacity rather than build their own facilities.
Snowflake is a particularly close competitor to Databricks in the data management and analytics market.
OpenAI, meanwhile, develops artificial intelligence models and applications, including ChatGPT.
These businesses are different, but they are increasingly connected. The AI revolution requires chips, data centres, electricity, software, storage systems and specialist expertise. Each creates opportunities for other companies.
This is important because the technology industry is no longer simply about selling computers or software to individuals. Increasingly, companies are selling the underlying infrastructure that allows thousands of other businesses to operate and develop their own technology.
Is another technology investment bubble developing?
There is a question that investors, governments and businesses should be asking.
The dot-com boom around the turn of the century demonstrated how quickly enthusiasm for a new technology can push company valuations to extraordinary levels.
The internet genuinely transformed business and society, but many companies that attracted substantial investment subsequently disappeared. The technology survived, but not every business built around it did.
There are similarities today.
Investors are putting enormous sums into AI companies, data centres and computer infrastructure. Some businesses are generating substantial revenues, while others are still trying to establish commercially viable products.
There is also a risk that companies are investing in AI because competitors are doing so, rather than because they have established exactly how it will improve their businesses or generate sufficient returns.
That does not mean the technology is a passing fashion. Artificial intelligence is already changing the way many organisations work. But the eventual winners may be very different from those currently attracting the most attention.
A company valued at $134 billion must deliver extraordinary future growth to justify that valuation.
The hidden cost: electricity and infrastructure
There is another side to this expansion which receives less attention.
Behind every AI application is computing infrastructure, and that infrastructure requires electricity, cooling, buildings, high-speed communications and substantial investment.
Data centres are becoming increasingly important to the economy, but their electricity requirements are also becoming a significant planning issue.
A House of Commons Library briefing published in May 2026 estimated that data centres accounted for around 2.5% of UK electricity consumption, with demand potentially rising substantially by 2030.
Ofgem has also highlighted the scale of the challenge. In July 2026 it reported that applications for electricity connections had increased from 41 gigawatts to 125 gigawatts in less than a year, with data centre projects accounting for at least 80 gigawatts of that demand.
Not every proposed project will proceed, but the figures demonstrate the scale of interest.
There is an obvious question about whether electricity networks can accommodate this expansion while also meeting the needs of households, transport, industry and other businesses.
The issue is particularly relevant to Scotland, which has substantial renewable electricity resources but also faces challenges connecting new developments to the grid.
Scotland wants a share of the AI revolution
Scotland is not standing on the sidelines.
The Scottish Government's AI Strategy for 2026–2031 recognises that data centres, electricity infrastructure, water supplies, skills and research facilities will all be important in attracting investment.
Several developments are already under way or being promoted.
The Lanarkshire AI Growth Zone is a particularly significant example. DataVita and CoreWeave are associated with an ambitious investment programme involving new computing facilities, renewable energy infrastructure and an innovation park.
The wider programme has been presented as an £8.2 billion investment opportunity supporting more than 3,400 jobs.
In August 2026, a further £300 million investment package was announced, with Dell Technologies also establishing a Scottish base at the Lanarkshire AI Innovation Park.
There are other proposals too, including major AI computing developments in North Ayrshire and research investment involving Lenovo in Edinburgh.
These developments demonstrate that Scotland has ambitions to become more than simply a producer of renewable electricity. It wants to attract the businesses, expertise and infrastructure that will allow it to participate in the wider technology industry.
However, attracting a data centre does not automatically guarantee thousands of permanent local jobs. These facilities can require substantial capital investment but relatively modest staffing once operational. The wider benefits depend on research, suppliers, training, construction, business development and the creation of other companies around them.
That distinction matters when governments announce impressive investment figures.
What about the Highlands and Caithness?
There is an interesting question for the Highlands.
Caithness and Sutherland have considerable renewable energy resources, engineering experience and a history of dealing with major infrastructure projects.
The region also has a university presence through UHI, alongside businesses and organisations with experience in energy, engineering and technical services.
However, renewable electricity generation alone is not enough to attract major technology companies.
They need reliable grid connections, suitable sites, high-speed digital communications, water infrastructure where required, access to skilled workers and a supportive business environment.
There may be opportunities in specialist computing services, data management, engineering, cybersecurity and supplying the infrastructure needed by larger technology companies.
The challenge is ensuring that opportunities are not concentrated entirely in the Central Belt and that smaller communities can participate in the supply chains and employment created by this expansion.
It is also worth remembering that the economic benefits of a major development should be measured by more than its headline investment figure. Local employment, apprenticeships, contracts for Scottish businesses, training opportunities and lasting economic activity are equally important.
Britain's wider challenge
The UK Government has recognised the importance of the sector through its industrial strategy and AI Growth Zones.
But there is a difference between announcing ambitious investment programmes and creating the conditions in which businesses can actually develop and prosper.
Britain needs a combination of reliable electricity, modern infrastructure, skilled workers, research investment and businesses capable of turning new technology into commercial products.
It also needs to ensure that smaller firms can benefit. Many small and medium-sized businesses have yet to make substantial use of AI, despite the attention given to it by larger companies.
There is a danger that the benefits of the technological revolution will be concentrated among a relatively small number of large companies and major cities unless the skills and opportunities are spread more widely.
The next industrial revolution?
Databricks provides an interesting insight into the direction of the global economy.
The company is not producing a consumer gadget or another social media platform. It is building the technology that other organisations increasingly need to operate, analyse information and develop artificial intelligence.
That makes it part of an industry which could become as important to the modern economy as telecommunications, electricity and computing infrastructure.
There will undoubtedly be opportunities, but also competition, financial risks and difficult decisions about how much electricity and public infrastructure should be committed to supporting the expansion.
For Britain and Scotland, the question is not simply whether we can attract the next Databricks or build another large data centre.
It is whether we can develop an economy that creates lasting employment, supports home-grown businesses, develops technical skills and captures a meaningful share of the value created.
The AI revolution is already under way. The countries that benefit most will not necessarily be those that spend the most money, but those that build the skills, infrastructure and businesses needed to turn technological change into lasting economic prosperity.
https://www.databricks.com/
Scotland's Artificial Intelligence strategy 2026-2031