US technology giant Amazon will invest £8 billion ($10.5 billion) within the UK over the subsequent five years and create hundreds of jobs through its web services division, the corporate and the British government announced on Wednesday.
The announcement is a welcome boon for Britain’s recently elected Labour government, which has placed promoting economic growth at the center of its promise to “rebuild” the country.
The investment – to construct, operate and maintain data centers within the UK – could contribute £14 billion to the country’s gross domestic product (GDP) and “support” greater than 14,000 jobs annually across the provision chain, Amazon said.
It is the corporate’s latest announcement of a significant investment by its cloud computing division AWS in a European country and comes amid a debate inside the European Union about “cloud” computing services.
“This £8 billion investment marks the start of the economic recovery and shows that Britain is a place to do business,” said British Finance Minister Rachel Reeves in a press release.
“I’m determined to go further in order that we will deliver on our mission to create jobs, unlock investment and make every a part of the UK higher.
“The hard work of restoring the foundations of our economy has only just begun.”
Amazon said the cash could be used to expand operations of its subsidiary Amazon Web Services (AWS).
The e-commerce giant is attempting to capitalize on rising demand for cloud computing capabilities akin to server space.
“Central importance”
UK government agencies and firms akin to airline EasyJet, bank Natwest and supermarket Sainsbury’s already use AWS data centres, as do most of the world’s leading firms.
“The next few years could be among the most critical for the UK’s digital and economic future,” said Tanuja Randery, AWS vp and managing director for Europe, Middle East and Africa.
He added that AWS’ expansion would “help organizations of all sizes across the country increasingly leverage technologies like cloud computing and AI to accelerate innovation, increase productivity, and compete on the global stage.”
In recent months, the subsidiary announced investments price tens of billions in Germany, Spain and France.
This comes amid discussions within the EU a few “European sovereign cloud” that may enable data to be stored and processed online without going through American technology giants.
Amazon employs 75,000 people in over 100 locations within the UK. In its press release, the corporate announced that it had invested £56 billion within the country between 2010 and 2022.
The company announced last month that it had doubled its quarterly profit, because of the cloud and artificial intelligence.
AWS revenue increased 19 percent to $26.3 billion within the second quarter.
Amazon is the world’s largest cloud provider, but has fallen behind the opposite two giants within the industry, Microsoft and Google, in the world of generative AI.
Datasheet: Stay on top of the technology business with in-depth evaluation from the largest names within the industry.
Register here.
 and "support" more than 14,000 jobs annually.){kind=link}