AWS plans £8 billion UK investment in huge data center expansion scheme

Amazon Web Services (AWS) has unveiled plans to invest £8 billion in the UK over the next five years as part of a major push to expand data center infrastructure across the country.

The investment, which forms part of the company’s long-term commitment to the UK, is expected to support an average of more than 14,000 full-time equivalent (FTE) jobs across the country.

Tanuja Randery, VP and managing director for EMEA at AWS, said the investment will help meet surging demand from customers and partners and play a crucial role in fuelling the “transformation of the UK’s digital economy”.

“The next few years could be among the most pivotal for the UK’s digital and economic future, as organizations 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,” Randery said.

“We’re proud to announce our plans to invest £8 billion in digital and AI infrastructure over the next five years.”

The move by AWS represents the latest major investment in the UK and brings its total investment in the country to around £11 billion.

The hyperscaler first launched an AWS Region in the UK in December 2016. Since then, the firm has ramped up services across the country, expanding the region to include three availability zones, two ‘WaveLength’ zones, and two edge locations in London and Manchester.

Since the turn of the decade, AWS has also invested £3 billion to help meet customer demand, and the company says it is estimated to have supported around 6,000 jobs.

This included a £1.8 billion investment in 2022 to expand data center infrastructure.

AWS’ parent company, Amazon, has also made direct investments of more than £56 billion in the UK since 2010. This, the company says, includes both capital expenditure on data center infrastructure, fulfillment centers, and corporate offices.

AWS’ UK investment the latest by the three big hyperscalers

AWS isn’t the only cloud computing giant pouring money into the UK at present, with rivals Google Cloud and Microsoft also unveiling large investments so far this year.

In January, Google Cloud announced plans to invest $1 billion as part of a move to expand data center infrastructure. The expansion scheme includes the development of a new data center in Waltham Cross, Hertfordshire

Debbie Weinstein, VP of Google and managing director of Google UK and Ireland, said the investment underlined the hyperscaler’s commitment to the UK.

“Investment in our Waltham Cross data center is the latest in a series of investments that support Brits and the wider economy at large and is further evidence of Google’s continued commitment to the UK — a key country for our business and a pioneering world leader in AI, technology and science,” she said.

Similarly, in February 2024, Microsoft confirmed plans to spend around £2.5 billion to expand AI data center infrastructure across the country over the next three years.

This funding boost will see the tech giant bring more than 20,000 of the most advanced GPUs to the UK by 2026, and forms part of a broader, pan-European investment strategy to meet surging AI-related data center demands.

At the time, Microsoft’s UK CEO Clare Barclay noted the country is “well placed” to establish itself as a global leader in the AI space. That potential, however, is dependent on the country’s approach to data center infrastructure and AI innovation.

"As one of the most digitally advanced economies in the world, the UK is well placed to lead the way in AI development and deployment,” Barclay said.

“The home of innovative businesses, research institutions and world leading universities, the UK is quick to adopt emerging technologies and use them to solve real-world challenges.”