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The cloud division of the U.S. e-commerce giant, AWS, says it plans to commit £8 billion to build and maintain data center infrastructures in the UK.
The announcement made in the early hours of Wednesday, September 11, will span over the next four years and will see Amazon expand its cloud arm in the EU amid rising demand for AI services.
This investment is expected to create over 14,000 jobs annually, primarily within the AWS data center supply chain, which includes roles in construction, maintenance, engineering, and telecommunications. AWS estimates that this initiative could contribute approximately £14 billion to the UK’s GDP by 2028.
Tanuja Randery, AWS’s Vice President and Managing Director for Europe, the Middle East, and Africa, highlighted that the investment underscores the growing demand for cloud computing and AI technologies among UK businesses.
Randery stated, “The next few years could be among the most pivotal for the UK’s digital and economic future,” emphasizing the importance of this investment in supporting innovation and productivity across various sectors.
AWS’s expansion comes at a time when the cloud computing sector is experiencing intense competition, particularly from rivals like Microsoft Azure and Google Cloud. The UK has become a focal point for cloud service providers, with Microsoft announcing last month that it will consider turning old power stations into data centers in the country.
According to Grandview research, the UK cloud computing market will exceed $100 billion by 2030, and is currently dominated by Amazon and Microsoft. Both cloud providers are under investigation for anti-competitive practices by the UK Competition and Markets Authority (CMA).
While this £8 billion AWS cloud investment has been welcomed as a critical step toward economic revitalization by Chancellor Rachel Reeves, the outcome of the CMA investigation could impact future operations and expansion plans of AWS and other major players in the country.
