Amazon Web Services (AWS) has announced a significant investment in the United Kingdom, with plans to inject £8bn ($10.50bn) into the country's digital infrastructure.
This five-year investment, which was secured by Chancellor Rachel Reeves, is expected to contribute around £14bn ($18.37bn) to the UK's Gross Domestic Product (GDP) from 2024 to 2028.
In addition, the investment is projected to support approximately 14,000 jobs per year, benefiting local businesses involved in construction, engineering, telecommunications, and other sectors tied to AWS's data center supply chain.
Chancellor Reeves emphasized that this investment is just the beginning of the UK's economic revival.
Speaking at a University Technical College in Silverstone, which partners with AWS to prepare students for the digital infrastructure industry, she acknowledged that "change cannot happen overnight."
She pointed out that while recent economic growth has been positive, it does not compensate for the past fourteen years of stagnation. However, she noted that the AWS investment is a step toward creating jobs, attracting further investment, and improving living standards across the country.
AWS Vice President and Managing Director for Europe, Middle East, and Africa, Tanuja Randery, highlighted the pivotal role of digital technology in the UK's future.
She noted that cloud computing and artificial intelligence (AI) are becoming crucial for businesses across the country.
The AWS investment will help accelerate innovation and increase productivity, enabling UK companies to compete more effectively on the global stage.
The investment will also support the UK's growing digital economy by providing infrastructure and tools necessary for businesses to thrive in the digital age.
The timing of the announcement is significant, as it comes shortly before the UK International Investment Summit in October 2024, where global businesses and investors will gather to discuss the UK's investment potential.
The UK government has made it clear that it is focused on delivering sustainable growth by fostering political and economic stability and implementing policies aimed at reform and investment.
The Organisation for Economic Co-operation and Development (OECD) recently published its assessment of the UK economy, highlighting slow growth and low productivity in recent years, exacerbated by reduced investment following the 2016 decision to leave the European Union.
The OECD emphasized the need for business stability and reforms to the UK's planning system, both of which are seen as essential for unlocking future growth.
In response, the UK government has welcomed the OECD's recommendations and has already announced measures to address these issues, such as reforming the planning system and launching the *National Wealth Fund to attract further investment.
* The National Wealth Fund is a government-controlled financial reserve aimed at attracting investment, supporting public projects, and stimulating long-term economic growth through strategic investments, with a particular focus on green technologies.
These steps, along with AWS's multi-billion-pound investment, signal a renewed commitment to strengthening the foundations of the UK economy and fostering long-term prosperity.