Amazon Web Services (AWS), the cloud computing division of the internet giant Amazon, announced on Wednesday that it will invest £8 billion ($10.45 billion) in the United Kingdom over the next five years to develop, operate, and maintain data centres.
This investment is expected to contribute £14 billion to the UK’s GDP by 2028 and create over 14,000 jobs at British businesses.
The commitment marks a significant increase in Amazon’s investment in the UK, following £3 billion invested in facilities in London and Manchester since 2022.
Tanuja Randery, AWS’s managing director, highlighted that the decision on data centre locations involves multiple factors, including power, water, and the local environment. She noted that artificial intelligence is a key driver for increased demand for cloud services.
AWS has also been expanding its investments in Europe, with recent announcements of pound 15.7 billion in Spain and pound 7.8 billion in Germany.
Analysts and executives observe that corporate spending on clo
ud computing is rebounding, driven by renewed interest in AI and growth in the $270 billion cloud infrastructure market.
The British finance minister, Rachel Reeves, welcomed the investment, which is part of her efforts to attract foreign investors ahead of an investment summit on October 14.
The UK government stated that the new data centres will be positioned to meet demand in London and the surrounding areas, though specific locations will not be disclosed for security reasons.
The finance ministry also mentioned ongoing discussions with Amazon about potential investments in other parts of the UK.
Source: Voice of Nigeria