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Amazon Web Services To Invest £8B in UK Datacenters by 2028

The Digital Artisan

Sep 11, 2024 — 2 min read

Amazon Pledges Major Investment in UK Digital Infrastructure

Amazon Web Services (AWS), the well-known cloud computing giant, has announced an ambitious plan to extend its footprint in the UK. The company has pledged to invest £8 billion ($10.4 billion) in British data centers from now until 2028, symbolizing a long-term commitment to nurture growth and productivity across the nation.

A Beneficial Move for the UK Economy

According to AWS, this move will infuse nearly £14 billion ($18.3 billion) into the national economy over the same timeframe and create over 14,000 jobs through its datacenter supply chain. This includes roles in construction, facility maintenance, engineering, and telecoms, making it one of the significant job creators in the area of digital infrastructure.

A Push Towards AI and Cloud Adoption

Tanuja Randery, AWS VP and MD for EMEA, stresses that this enormous investment comes at a crucial time as businesses are increasingly adopting AI and cloud technologies to stay competitive globally. She affirmed that the planned investment in digital and AI infrastructure in the next five years is tailored to meet the growing needs of customers and catalyze the transformation of the UK's digital economy.

Boosting Public Sector Revenue

In addition to its promised investment, AWS has significantly expanded its revenues in Britain, pumping up by 30.1 percent to £3.78 billion ($4.9 billion). The cloud behemoth has also increased its direct public sector revenue from the UK government, further contributing to the country's GDP growth.

Criticisms and Investigations

However, amid this positive news, critical points have arisen. AWS has been accused of being less than transparent about its tax arrangements, while its parent company, Amazon, was reportedly not contributing corporation tax for two consecutive years. AWS is also under the UK's competition authority's scrutiny amid concerns over anti-competitive practices in the cloud market.

A Call for Fair Competition

Outspoken critics like Mark Boost, CEO of UK cloud operator Civo, assert the need for a level playing field for Britain's datacenter innovators to participate in shaping the digital future of the country, rather than an overreliance on global cloud giants simply for their scale.

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