UK MPs want Palantir out of NHS data platform, cite risks of overreliance on US tech giant

Palantir, the US software company known for building data analytics platforms used by governments, militaries and intelligence agencies, has become one of the most influential technology providers in Britain's public sector. Its largest UK project is the NHS Federated Data Platform (FDP), a £330 million initiative designed to bring together healthcare data from different parts of the National Health Service into a single system that can help hospitals manage waiting lists, allocate resources and improve patient care.

However, the company's growing influence is now drawing renewed scrutiny from lawmakers.

A House of Commons technology committee has called on the UK government to reconsider Palantir's role in critical public services, warning that heavy reliance on the American firm could leave Britain exposed to strategic risks, reports Financial Times.

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In a report published on Wednesday, MPs urged ministers to use a break clause in Palantir's NHS contract in 2027 and begin exploring UK-based alternatives.

The intervention marks the latest chapter in a debate that extends beyond healthcare and into wider questions about technology sovereignty, national security and the risks of relying on a small number of foreign technology companies.

MPs warn of growing dependence on a US technology supplier

At the centre of the committee's concerns is the issue of dependency.

Lawmakers argued that Palantir's expanding presence across healthcare, defence, policing and financial regulation has created an uncomfortable level of reliance on a single overseas provider. The committee warned that such concentration could leave the UK vulnerable to external pressures and reduce its ability to control critical digital infrastructure.

In its report, the committee said Palantir should not have such a significant role within the public sector, describing the company's growing presence as an "unacceptable point of weakness".

MPs also raised concerns about "vendor lock-in", a situation where organisations become so dependent on a supplier's technology that switching to another provider becomes difficult, expensive or operationally disruptive.

The report warned that dependence on overseas digital services could create opportunities for adversaries to exploit. It added that relying heavily on a small number of US-based technology companies could leave Britain's ambitions to modernise public services vulnerable to decisions made beyond its borders.

The concerns arrive at a time when governments worldwide are increasingly examining who controls critical data infrastructure and whether key public systems should depend on foreign technology providers.

Beyond the NHS, Palantir holds contracts worth hundreds of millions of pounds with organisations including the Ministry of Defence, police forces and the Financial Conduct Authority.

Palantir pushes back as scrutiny intensifies

Palantir strongly rejected the committee's recommendations.

Louis Mosley, the company's UK chief, accused MPs of focusing on political optics rather than public service outcomes. He argued that the committee had ignored evidence showing that Palantir's technology was delivering measurable benefits across healthcare, policing and defence.

According to Mosley, the company's platforms have helped improve NHS operations, support law enforcement efforts and strengthen military capabilities. He suggested that removing Palantir from the NHS data programme could ultimately harm the very public services lawmakers are trying to protect, reports the Financial Times.

The debate surrounding Palantir's role in Britain has intensified over the past year.

Its NHS contract has become particularly controversial, with critics raising concerns about ethics, procurement and data governance. Some healthcare staff have reportedly objected to working with the Federated Data Platform, while supporters argue that the technology can improve efficiency and patient outcomes across the health service.

Last month, scrutiny increased further when London Mayor Sir Sadiq Khan's office intervened to stop the Metropolitan Police from awarding Palantir a proposed £50 million contract, citing concerns over procurement procedures and value for money.

The parliamentary committee stressed that its criticism was not based on the quality of Palantir's products or ideological opposition to the company. Instead, MPs said their concerns centred on resilience, competition and national control over critical infrastructure.

The report also referenced previous comments made by Palantir co-founder Peter Thiel, including remarks critical of the NHS, arguing that the company's growing role in British public services sits uneasily alongside what it described as a mismatch with UK values.

For now, Palantir remains deeply embedded within some of Britain's most important public institutions. But the committee's recommendations suggest that questions about who should manage the country's most sensitive data systems are only becoming more pressing.