Amazon Web Services (AWS) has announced plans to invest £8 billion (approximately $10.5 billion) in the United Kingdom over the next five years, from 2024 to 2028. This significant investment is aimed at building, operating, and maintaining data centers across the country, reinforcing AWS’s commitment to supporting growth and productivity in the UK.
The investment is expected to have a substantial economic impact:
- It’s estimated to contribute £14 billion to the UK’s total Gross Domestic Product (GDP) through 2028.
- On average, it will support more than 14,000 full-time equivalent (FTE) jobs annually at local UK businesses. These jobs will span various sectors, including construction, facility maintenance, engineering, telecommunications, and other roles within the broader local economy.
This announcement builds on AWS’s existing presence in the UK. The company first launched an AWS Region in the UK in December 2016 and has since expanded to include three Availability Zones, two Wave Length Zones, two Edge Locations, and a Regional Edge Cache. From 2020 to 2023, AWS invested over £3 billion in the UK, which supported an average of more than 6,000 FTE jobs at local businesses. With the new investment plan, AWS’s total planned investment in the UK from 2020 to 2028 will exceed £11 billion.
The UK government has welcomed this investment, with Chancellor of the Exchequer Rachel Reeves describing it as “the start of the economic revival” that demonstrates Britain’s attractiveness as a place to do business. Technology Secretary Peter Kyle emphasized the importance of such investments in supporting digital advancement and providing the necessary infrastructure for innovators to grow the digital economy.
AWS’s investment comes at a crucial time for the UK’s digital and economic future. The company sees the next few years as pivotal, with organizations of all sizes increasingly embracing technologies like cloud computing and AI to accelerate innovation, increase productivity, and compete globally.
The impact of cloud computing on the UK economy has been significant. According to independent analysis by Telecom Advisory Services, the total economic impact of cloud computing in the UK accounted for over £42 billion in 2023, equivalent to 1.6% of GDP. This makes it larger than the UK’s automotive manufacturing sector.
To better understand the current and potential impact of cloud computing and AI in the UK, AWS commissioned independent consultancy Public First to conduct research. The findings reveal several key points:
- 84% of AWS customers believe their business has saved money by investing in cloud infrastructure, with an average cost saving of 28% compared to using on-premises infrastructure.
- On average, using AWS reduces the time to deploy new software by over a quarter (27%).
- 82% of AWS customers think cloud computing has made it possible for them to take their business global.
- 85% agree that cloud computing has made it easier to compete with larger companies.
- 78% of AWS users say they have reduced their energy consumption and improved sustainability as a result of using the cloud.
The research also highlighted a correlation between companies’ digital intensity and their revenue growth. Digital Leaders – companies in the top 20% of digital intensity – were four times more likely to have seen strong revenue growth above 5% in the last year.
To fully leverage the economic benefits of cloud computing and AI, more companies, especially small and medium businesses (SMBs), need to adopt these technologies. Public First estimates that if half of the SMBs that aren’t currently Digital Leaders adopt technologies such as cloud computing and AI, it could create an additional £38 billion in value for the UK economy over the next five years.
However, realizing this potential will require addressing the digital skills gap. According to research by Gallup for AWS, 72% of businesses surveyed in the UK have vacancies for workers with digital skills, but only 11% of UK workers possess advanced digital skills.
To address this, AWS has committed to providing free cloud computing skills training to millions of people globally. The company surpassed its goal of training 29 million people by 2025 in July 2024, having helped more than 31 million learners across 200 countries, including the UK. AWS has launched several learning and skills programs, including AWS Educate, AWS Academy, and AWS re/Start, as well as free training via AWS Skill Builder.
Additionally, AWS has committed to providing free AI skills training to two million people of all ages by 2025 to help unlock the full potential of AI. This initiative includes new programs for adults and young learners, as well as scaling existing free AI training programs.
The investment announcement is part of Amazon’s broader commitment to the UK. Between 2010 and 2022, Amazon made direct investments of more than £56 billion in the UK, including both capital and operating expenditures. The company currently employs 75,000 people in the UK across various functions and locations.
This investment by AWS is seen as a significant vote of confidence in the UK’s digital economy and its potential for growth. It aligns with the UK government’s mission to boost economic growth, unlock investment, and improve prosperity across all parts of Britain. However, both AWS and the UK government acknowledge that realizing the full benefits of this investment and the broader digital transformation will require ongoing efforts to develop digital skills, support businesses in adopting new technologies, and create an environment conducive to innovation and growth in the digital economy.
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