Amazon, the US tech giant, has announced plans to invest £8 billion (approximately ₹87,000 crore) in the UK over the next five years, primarily through its web services division, Amazon Web Services (AWS). This substantial investment is expected to create thousands of jobs and significantly boost the UK economy.
The investment will focus on building, operating, and maintaining data centers in the UK, which could contribute £14 billion to the country’s gross domestic product (GDP) and support over 14,000 jobs annually across the supply chain. Amazon’s announcement comes as a major win for the newly elected Labour government, which is prioritizing economic growth as part of its agenda to “rebuild” the nation.
UK finance minister Rachel Reeves hailed the investment as a sign of economic revival, stating, “This £8 billion investment marks the start of the economic revival and shows Britain is a place to do business.” She emphasized the government’s commitment to creating jobs and unlocking investment to improve the nation.
Amazon Web Services is expanding its operations in the UK, aiming to meet the growing demand for cloud computing services such as server space. AWS currently serves a range of UK companies and government agencies, including EasyJet, NatWest, and Sainsbury’s.
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Tanuja Randery, AWS Vice President and Managing Director for Europe, Middle East, and Africa, called the next few years “pivotal” for the UK’s digital and economic future. She highlighted that AWS’ expansion would help businesses across the UK adopt advanced technologies like cloud computing and artificial intelligence (AI) to drive innovation, boost productivity, and compete globally.
Amazon’s recent investments in other European countries, including Germany, Spain, and France, indicate the company’s commitment to expanding its cloud computing operations in the region. This expansion comes amid ongoing discussions in the European Union about creating a “European sovereign cloud” that would reduce reliance on American tech giants for data storage and processing.
Currently, Amazon employs 75,000 people across more than 100 sites in the UK and has invested £56 billion in the country between 2010 and 2022. Last month, the company reported that its quarterly profits had doubled, driven largely by growth in its cloud and AI services, with AWS revenue rising 19% to $26.3 billion (approximately ₹2.2 lakh crore) in the second quarter.
