Amazon’s announcement marks a major victory for the newly elected Labor government, which has prioritized economic growth as part of its agenda to “rebuild” the country.

US tech giant Amazon has announced plans to invest £8 billion (around ₹87,000 crore) in the UK over the next five years, primarily through its web services division, Amazon Web Services (AWS). The massive investment is expected to create thousands of jobs and significantly boost the UK economy.

The investment will focus on building, operating and maintaining data centres in the UK, which could contribute £14 billion to the country’s gross domestic product (GDP) and support more than 14,000 jobs each year along the country’s supply chain. Amazon’s announcement marks a major victory for the newly elected Labour government, which has prioritised economic growth as part of its agenda to “rebuild” the country.

UK Chancellor of the Exchequer Rachel Reeves hailed the investment as a sign of economic recovery, saying: “This £8 billion investment marks the start of the economic recovery and shows that Britain is a place to do business.” She underlined the government’s commitment to creating jobs and unlocking investment to improve the country.

Amazon Web Services is expanding its operations in the UK to meet growing demand for cloud computing services such as server space. AWS currently serves a range of UK businesses and government agencies, including EasyJet, NatWest and Sainsbury’s.

Tanuja Randery, AWS vice president and general manager for Europe, Middle East and Africa, called the next few years “critical” for the UK’s digital and economic future. She noted that AWS’s expansion will help UK businesses adopt advanced technologies such as cloud computing and artificial intelligence (AI) to drive innovation, increase productivity and compete globally.

Amazon’s recent investments in other European countries, including Germany, Spain and France, demonstrate the company’s commitment to expanding its cloud computing operations in the region. The expansion comes amid ongoing discussions in the European Union about creating a “sovereign European cloud” that would reduce reliance on American tech giants for data storage and processing.

Amazon currently employs 75,000 people across more than 100 locations in the UK and has invested £56 billion in the country between 2010 and 2022. Last month, the company reported that its quarterly profits doubled, driven largely by growth in cloud and AI services, with AWS revenues rising 19% to $26.3 billion (around ₹2.2 lakh crore) in the second quarter.