Chancellor Rachel Reeves has announced that Amazon Web Services will invest £8bn in the UK, a move expected to create thousands of jobs across the region.
The investment comes after a meeting last week where the Chancellor secured a five-year commitment from Amazon Web Services. It is expected to support approximately 14,000 jobs annually at local businesses, including roles in the company’s data centre supply chain, such as construction, facility maintenance, engineering and telecommunications, as well as other jobs throughout the wider economy.
Reeves said: “I am under no illusion to the scale of the challenge facing our economy and I will be honest with the British people that change will not happen overnight. Two-quarters of positive economic growth does not make up for fourteen years of stagnation under the previous government.
“However, this £8bn investment marks the start of the economic revival and shows Britain is a place to do business. I am determined to go further so we can deliver on our mandate to create jobs, unlock investment and make every part of Britain better off. The hard work to fix the foundations of our economy has only just begun.”
Founded in 2006, Amazon Web Services is a subsidiary of Amazon.com based in the US. It is a comprehensive cloud computing platform that provides over 200 fully featured services globally, such as computing power, storage, databases, machine learning and more.
The company has partnered with banks and financial institutions across the globe, including banks in the UK such as HSBC. This strong presence, along with its insight into the UK’s ambitions to lead in emerging technologies like AI, makes it well-positioned to support and drive innovation within the UK’s tech sector.
Amazon Web Services Vice President and Managing Director of Europe, Middle East and Africa (EMEA), Tanuja Randery, commented: “The next few years could be among the most pivotal for the UK’s digital and economic future, as organisations 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.
“AWS is proud to announce our plans to invest £8bn in digital and AI infrastructure over the next five years to help meet the growing needs of our customers and partners, and support the transformation of the UK’s digital economy.”
While Chancellor Reeves has noted that this investment won’t lead to immediate changes, it is expected to boost the UK’s GDP, with Amazon Web Services estimating a £14bn contribution to the economy between 2024 and 2028.
Discussing its impact on GDP, Reeves concluded: “That is why we are taking the long-term decisions now to fix the foundations of our economy, including today’s announcement of £8bn of new investment from Amazon Web Services, that will help rebuild Britain and make every part of the country better off.”
