Amazon has revealed plans to invest GBP 8 billion (USD 10.5 billion) in the United Kingdom over the next five years, a move expected to generate thousands of jobs through its web services division.
The announcement, made jointly by Amazon and the UK government, provides a significant boost to Britain’s newly elected Labour administration. The government has prioritized economic growth as a central component of its commitment to “rebuild” the nation.
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Categorical Investments
Amazon’s investment, aimed at building, operating, and maintaining data centers in the UK, is projected to contribute GBP 14 billion to the country’s GDP and support over 14,000 jobs annually across the supply chain, according to the company.
This announcement marks the latest substantial investment by Amazon’s AWS cloud computing division in a European country, occurring against the backdrop of ongoing discussions within the European Union regarding cloud computing services.
“This GBP 8 billion investment marks the start of the economic revival and shows Britain is a place to do business,” UK Finance Minister, Rachel Reeves, said in a statement.
Reeves also expressed that she is determined to advance efforts in job creation and investment, and improve conditions across all parts of Britain in a recent statement. “The hard work to fix the foundations of our economy has only just begun.”
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AWS Expansion
Amazon stated that the investment will be used to expand its Amazon Web Services (AWS) subsidiary. The e-commerce giant aims to capitalize on the growing demand for cloud computing resources, including server space.
UK government agencies and companies such as easyJet, NatWest, and Sainsbury’s already utilize AWS data centers, following the trend of many leading global businesses.
“The next few years could be among the most pivotal for the UK’s digital and economic future,” said Tanuja Randery, AWS Vice President and Managing Director, Europe, Middle East & Africa.
He noted that AWS’s expansion would enable organizations of all sizes across the country to increasingly adopt technologies such as cloud computing and AI, which would help them accelerate innovation, boost productivity, and compete globally.
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Slated Expansion
In recent months, Amazon’s subsidiary has revealed plans to invest billions of euros in Germany, Spain, and France. This development follows the ongoing EU discussions regarding the creating of a “European sovereign cloud” to facilitate data storage and processing without reliance on American technology giants.
Amazon currently employs 75,000 people across over 100 sites in Britain and will reportedly invest GBP 56 billion in the country from 2010 to 2022. Recently, the company revealed that it had doubled its quarterly profits, fueled by growth in cloud computing and AI.
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