MoD Signs £240.6M Palantir Deal Amid US Protests and UK Controversy

The UK's Ministry of Defence (MoD) has awarded a £240.6 million contract to US technology company Palantir, continuing a partnership that has drawn both strategic praise and ethical concerns.

The three-year deal, set to begin on 1 April 2026, was signed directly with Palantir's UK unit on 30 December 2025. The contract notice, published on 23 January, describes it as "a follow-on enterprise agreement" for "continued licensing and support to data analytics capabilities supporting critical strategic, tactical and live operational decision making across classifications across defense and interoperable with Nato and other allied nations Palantir systems."

Direct Award Raises Procurement Questions

The MoD used a defense and security exemption to justify awarding the contract directly rather than running a competitive procurement process. This approach has become increasingly common for sensitive defense technology contracts but often draws scrutiny from transparency advocates.

"We conduct comprehensive due diligence on any business appointments that may lead to concern," an MoD spokesperson stated. "We work diligently to enforce any conditions placed on individuals, fully investigating instances raised of breached policy and, if found valid, take appropriate action."

The department's transparency data confirms that Palantir hired four MoD officials in 2025, including Barnaby Kistruck, former director of policy, who joined the company in September just days after leaving the ministry. The MoD has imposed restrictions on Kistruck's new role, including prohibitions on using government contacts or advising on MoD-specific bids for 12 months.

US Tech Workers Protest Palantir's ICE Ties

The timing of the UK contract award coincides with growing unrest among US technology workers over Palantir's relationship with Immigration and Customs Enforcement (ICE). Earlier this week, hundreds of US tech staffers called on their employers to demand that ICE end deployments in American cities after agents shot and killed two people in Minneapolis.

Palantir, chaired by former PayPal CEO Peter Thiel, has long been associated with defense and government security work, including its controversial contracts with ICE. The company's data analytics platforms have been deployed across various government agencies, raising ongoing debates about surveillance capabilities and ethical boundaries.

UK Government Strategy and Local Resistance

The £240.6 million deal follows a September 2025 agreement under which Palantir committed to basing its European defense work in Britain, creating up to 350 new jobs. The company's British subsidiary, Palantir Technologies UK Ltd, reported employing an average of 749 people in 2024, down from 842 in 2023.

However, Palantir's presence in the UK extends beyond defense. The company provides the National Health Service in England with a Federated Data Platform under a £330 million seven-year contract awarded in November 2023. This healthcare contract has faced its own opposition, with Green Party leader Zack Polanski calling for its termination when reviewed next year.

"This Trump-supporting military surveillance outfit has no place in Britain's most important institution," Polanski said last week, referring to Palantir's connections to former US President Donald Trump and its defense-focused business model.

Local resistance has emerged as well. The integrated care board for Greater Manchester, covering 2.8 million people, has delayed joining the Federated Data Platform, citing the need for more evidence that participation would be in the best interests of local residents.

Strategic Implications and NATO Integration

The MoD's contract notice emphasizes that Palantir's systems will be "interoperable with Nato and other allied nations Palantir systems," highlighting the strategic importance of data standardization across Western defense networks. This interoperability requirement suggests the contract is as much about maintaining alliance cohesion as it is about individual capability enhancement.

The redacted version of the full contract will be available for public request 90 days after the award date, providing future opportunities for detailed analysis of the specific terms and conditions governing this significant defense technology partnership.

The deal represents a continued bet by the UK government on Palantir's data analytics capabilities, even as the company faces growing scrutiny both in the US and UK over its government contracts and ethical implications. As the three-year agreement unfolds, it will likely remain a focal point for debates about the role of private technology companies in public sector operations, from battlefield decision-making to healthcare data management.