Amazon is to invest £8 billion in cloud and AI infrastructure in the UK, generating £14 billion in GDP and supporting 14,000 jobs.
TakeAway Points:
- AWS plans to enhance cloud and artificial intelligence infrastructure in UK data centres by investing £8 billion ($10.45 billion) over a five-year period.
- By 2028, the investment is anticipated to support around 14,000 full-time employment yearly and add £14 billion to the UK’s GDP.
- The decision is hailed by government officials as evidence of the UK’s digital economy’s expansion and economic resurgence.
AWS invests in UK
Amazon Web Services (AWS), the cloud division of Amazon, has announced a significant investment of £8 billion ($10.45 billion) over the next five years to build and operate data centers in the United Kingdom. This move is part of AWS’s broader strategy to expand its cloud computing capabilities and infrastructure in Europe. The investment is expected to contribute £14 billion to the UK’s Gross Domestic Product (GDP) by 2028 and support over 14,000 full-time equivalent jobs annually in local businesses. These jobs will span various sectors, including construction, facility maintenance, engineering, and telecommunication.
Tanuja Randery, Managing Director for Europe, Middle East, and Africa at AWS, emphasized the transformative potential of generative AI, stating, “Generative AI is probably the most transformative technology we have seen, possibly since the cloud and the internet.” She added that businesses are increasingly adopting cloud computing and AI technologies to drive revenue growth, enhance employee productivity, and compete globally. AWS’s investment aims to support these needs by providing the necessary infrastructure.
Impact on Employment and the Economy
The planned £8 billion investment will significantly impact the UK’s economy and job market. AWS estimates that this investment will support an average of more than 14,000 full-time equivalent jobs annually at local UK businesses. These positions will be part of the AWS data center supply chain, ranging from construction and facility maintenance to engineering and telecommunications. The investment is also expected to contribute £14 billion to the UK’s GDP over the next five years.
AWS first launched a region in the UK in December 2016 and has since expanded to include three Availability Zones, two WaveLength Zones, two Edge Locations, and a Regional Edge Cache. Since 2020, AWS has invested over £3 billion in the UK, supporting an average of more than 6,000 full-time equivalent jobs. Combined with the new investment, AWS’s total planned investment in the UK from 2020 to 2028 will exceed £11 billion.
Government and industry responses
The investment has been welcomed by key government officials and industry leaders. Rachel Reeves, Chancellor of the Exchequer, stated, “This £8 billion Amazon Web Services investment marks the start of the economic revival and shows Britain is a place to do business.” Technology Secretary Peter Kyle also praised the investment, saying, “Today’s announcement reflects the growing strength of the UK’s digital economy with a key player like Amazon Web Services committing to growing and expanding on our shores.”
AWS’s investment aligns with the UK government’s mission to boost growth, unlock investment, and improve the digital economy. The government is also engaged in discussions with AWS about potential investments in other parts of the UK. However, the exact locations of the new data centers have not been disclosed for security reasons.
