Rachel Reeves has secured an £8 billion investment from Amazon Web Services to build and operate data centres in the UK over the next five years.
The technology giant said the growth of cloud computing and artificial intelligence was key to the increasing investment, which the firm said could contribute around £14 billion to the UK’s GDP and help support around 14,000 jobs each year.
The development and maintenance of new AI tools requires increasingly large amounts of computing power and server space, meaning firms such as AWS are well placed to benefit from the rising demand for cloud computing capacity.
Many of the world’s largest companies use AWS data centres, and in the UK includes Deliveroo, easyJet, EDF, Just Eat, Monzo, NatWest, Sainsbury’s and others, as well as government agencies, educational institutions and public sector firms.
Chancellor Rachel 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 14 years of stagnation under the previous government.
“However, this £8 billion 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.”
AWS said the investment was part of the company’s long-term commitment to support growth and productivity across the country.
Tanuja Randery, vice president and managing director for AWS in Europe, the Middle East and Africa, said: “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.
“We’re proud to announce our plans to invest £8 billion 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.”
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