Amazon’s cloud computing arm, Amazon Web Services, plans to invest £8 billion ($10.45 billion) in the U.K. over the next five years to build, operate and maintain data centers.
“This £8 billion Amazon Web Services investment marks the start of the economic revival and shows Britain is a place to do business,” stated chancellor of the exchequer Rachel Reeves.
This investment is part of the company’s long-term commitment to supporting growth and productivity across the country, and is estimated to contribute £14 billion ($18.32 billion) to the U.K.’s total gross domestic product (GDP) until 2028. Amazon’s investment will also support an average of more than 14,000 full-time jobs annually at local U.K. businesses.
AWS invested over $3.93 billion in U.K. since 2020
“Today’s announcement reflects the growing strength of the U.K.’s digital economy with a key player like Amazon Web Services committing to growing and expanding on our shores,” added technology secretary Peter Kyle.
In a statement, Amazon Web Services said that it first launched an AWS region in the U.K. in December 2016. Over the last few years, the company has continued to expand the region to include three availability zones (AZ), two wavelength zones, two edge locations, and a regional edge cache.
Since 2020, Amazon Web Services has invested over £3 billion ($3.93 billion) in the U.K. to help meet the growing needs of customers. This investment supported more than 6,000 jobs at local businesses.
With today’s announcement, the company’s total investment plans in the U.K. from 2020 to 2028 reached more than £11 billion ($14.39 billion).
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Cloud computing and AI adoption rises
“The next few years could be among the most pivotal for the U.K.’s digital and economic future, as organizations of all sizes across the country increasingly embrace technologies like cloud computing and AI to help them accelerate innovation, increase productivity, and compete on the global stage,” added Tanuja Randery, vice president and managing director, EMEA.
The total economic impact of cloud computing in the U.K. accounted for over £42 billion in 2023, according to an independent analysis by Telecom Advisory Services. That’s equivalent to 1.6 percent of GDP, or larger than the U.K.’s automotive manufacturing sector.
As a whole, Amazon has made direct investments of more than £56 billion in the U.K. between 2010 and 2022. This includes both capital expenditure and operating expenditure. In addition, Amazon employs 75,000 people in the U.K. across over 100 sites, including more than 25 U.K. fulfilment centers and corporate offices in six cities.
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