Amazon Web Services (AWS) has announced a new investment in the UK, revealing plans to pour £8 billion into building, operating, and maintaining data centres between 2024 and 2028. The project is set to have an impact on the UK economy, contributing an estimated £14 billion to the country’s GDP over the next five years. The ripple effects of this investment could be far-reaching, supporting jobs, businesses, and the UK’s growing digital economy.
According to the company, this investment will support over 14,000 full-time jobs across various sectors annually, ranging from construction and telecommunications to engineering and facility maintenance. These jobs aren’t just in the tech bubble—they spread across local economies, creating opportunities far beyond just London or other major cities.
The UK government has welcomed AWS’s investment with open arms. Chancellor of the Exchequer Rachel Reeves hailed the £8 billion commitment as a key part of Britain’s economic revival, calling it a “sign that Britain is a place to do business.”
Meanwhile, Technology Secretary Peter Kyle pointed out how this investment reflects the strength of the UK’s digital economy. “From increasing compute power to providing access to AI, it is vital that innovators have the infrastructure they need to grow our digital economy and drive breakthroughs,” Kyle said.
AWS’s leadership shares this sentiment. Tanuja Randery, AWS’s Managing Director for Europe, Middle East, and Africa, believes that the next few years could be transformative for the UK.
“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,” she said.
AWS’s £8 billion investment might sound like a lot of money for just “data centres,” but these centres are the backbone of modern business. They store the data we rely on every day—from banking apps to online shopping. And it’s not just the tech giants that benefit.
Small businesses, educational institutions, and even local councils like Swindon Borough Council rely on AWS services. AWS’s cloud technology is crucial to driving innovation and increasing productivity.
AWS’s technology enables businesses of all sizes to tap into cutting-edge computing power without having to build expensive in-house infrastructure. According to research commissioned by AWS, 84% of their customers say cloud computing has saved them money—an average of 28% compared to traditional on-site solutions.
Beyond just saving money, AWS’s services allow businesses to scale faster and compete globally. Around 82% of AWS customers reported that using cloud infrastructure made it easier to expand internationally, while 85% said it gave them the ability to compete with larger companies.
To understand why AWS’s investment is so significant, let’s take a step back and look at the broader picture. Cloud computing is rapidly becoming the backbone of the UK economy.
In 2023, cloud computing contributed £42 billion to the UK’s GDP, accounting for 1.6% of the entire economy. For context, that’s bigger than the country’s automotive manufacturing sector.
The company launched its first UK data centre region in December 2016 and has been expanding ever since. Between 2020 and 2023, AWS invested over £3 billion in the UK. This earlier investment supported 6,000 full-time jobs, helping businesses of all sizes—from startups to public sector organisations—rely on AWS’s cloud infrastructure to innovate and grow.
When you combine AWS’s new £8 billion pledge with previous investments, the company’s total UK spend from 2020 to 2028 will top £11 billion. That’s a hefty sum for any company, but for AWS, it’s a reflection of just how important the UK is to its global business strategy.
The skills gap: A challenge for the UK’s workforce
However, there’s one major hurdle in the way of fully realising this potential: a skills gap. According to research by Gallup for AWS, 72% of UK businesses are struggling to fill positions that require digital skills, yet only 11% of UK workers currently possess advanced digital expertise.
This mismatch poses a threat to the country’s ability to fully leverage the advantages that cloud computing and AI offer.
In response, AWS has been ramping up its efforts to close this gap. Back in 2020, the company committed to providing free cloud computing training to 29 million people worldwide by the end of 2025.
Fast forward to July 2024, and AWS has already exceeded this target, training more than 31 million people across 200 countries, including many here in the UK.
AWS offers a wide range of training initiatives like AWS Educate, AWS Academy, and AWS re/Start, making cloud skills accessible to everyone—from students to professionals looking to reskill. In addition, the company is rolling out free AI skills training for two million people by 2025, recognising the growing importance of AI in the workforce.
While AWS’s investments are impressive, they’re part of a much larger picture. Amazon as a whole has invested over £56 billion in the UK between 2010 and 2022. The company now employs 75,000 people across more than 100 sites, including corporate offices, fulfilment centres, and data centres.
Looking ahead, the UK’s economic success may hinge on how well it can embrace new technologies. Companies that lead in digital adoption are already reaping the benefits.
In fact, businesses in the top 20% of digital technology use, known as Digital Leaders, are four times more likely to experience strong revenue growth (above 5%) than those lagging behind.
In the words of AWS, “We will continue to push the boundaries of how technology – digital infrastructure and services – can help our customers and partners to innovate, scale, and boost growth and productivity across the UK.” And that, in a nutshell, is why AWS’s £8 billion investment matters.