Amazon Web Services (AWS) has disclosed its intention to inject £8 billion into the development, upkeep, and operation of multiple data centres in the United Kingdom over the next five years. This move is designed to amplify its existing footprint in the country.
The significant investment from AWS is projected to bolster the UK’s gross domestic product (GDP) by £14 billion by 2028, while sustaining an average of over 14,000 full-time equivalent jobs per year for local businesses, according to City AM. “Part of our long-standing AWS commitment to support growth and productivity across the country,” stated Phil Le-Brun, director of enterprise strategy at AWS. He noted that the potential influx of opportunities from this investment would be equitably spread across the nation.
Le-Brun emphasised the potential benefits for small and medium-sized enterprises (SMEs), highlighting that if approximately half of these businesses embraced advanced technology such as cloud computing and AI, it could potentially generate £38 billion in additional value for the UK economy over the coming five years.
This investment is a part of a broader trend among leading technology firms to construct more data centres amidst escalating global demand for AI and computing power. For instance, Microsoft has committed £2.5 billion towards the development of AI infrastructure in the UK, which includes a doubling of its data centre capacity. Simultaneously, Google is investing $1 billion (£790 million) in a 33-acre data centre in Hertfordshire to foster new AI models.
However, the establishment of data centres is often criticised for their intensive energy consumption and substantial water usage for cooling purposes. A study by researchers at the University of California predicts that by 2027, the demand for AI could lead to the consumption of between 4.2 billion and 6.6 billion cubic metres of water—almost half of the UK’s annual consumption.
Addressing these concerns, Le-Brun affirmed that AWS is committed to finding ways to reduce both energy and water usage in its data centres. He mentioned that in 2023, all electricity consumed by AWS’s operations, including its data centres, was matched with 100 per cent renewable energy.
This substantial investment by AWS signifies a significant step forward for the UK’s technology sector, promising economic growth and job creation while addressing environmental concerns associated with data centre operations.