Amazon Invests $10.45 Billion in UK Cloud Expansion, Boosting Economy and Jobs

Amazon Web Services (AWS), the cloud computing division of Amazon.com Inc., announced plans to invest £8 billion ($10.45 billion) in the UK over the next five years. This substantial investment will fund the construction, operation, and maintenance of data centers across the country.

The project is expected to contribute up to £14 billion to the UK’s gross domestic product by 2028 and create over 14,000 jobs at British businesses. This expansion represents a significant increase in Amazon’s investment in the UK, following the £3 billion spent on facilities in London and Manchester since 2022.

Tanuja Randery, Managing Director at AWS, highlighted that the decision to establish new data centers involves considerations such as power, water, and the local environment. She noted that the growing demand for artificial intelligence is a key driver behind the surge in cloud services.

AWS has also been active in Europe, with recent announcements of a €15.7 billion investment in Spain and €7.8 billion in Germany. The cloud infrastructure market, valued at $270 billion, is seeing a rebound as corporate customers resume spending, particularly driven by interest in AI.

British Finance Minister Rachel Reeves, who is promoting foreign investment ahead of an upcoming investment summit, welcomed the announcement. The UK government noted that while the specific locations of the new data centers will be kept confidential for security reasons, they will be situated to meet growing demand in London and the surrounding areas. Discussions are also underway regarding further investments in other parts of the UK.