Chancellor Rachel Reeves confirmed the investment, framing it as part of the government’s long-term economic strategy to drive growth and attract investment across the UK. “This £8bn investment marks the start of the economic revival and shows Britain is a place to do business,” Reeves said.

AWS expects this investment will add £14bn to the UK’s gross domestic product (GDP) between 2024 and 2028. The datacentres will support customers in London and the west of England, though AWS has declined to reveal their exact locations for security reasons.

Concerns Raised Over Amazon’s Labour Practices

While the investment is expected to create a significant number of jobs, the announcement has been met with some scepticism. Gary Smith, general secretary of the GMB union, welcomed the new roles but raised concerns about AWS’s corporate practices. He criticised the company’s reliance on public funds while questioning its treatment of workers in Amazon’s retail division. “Workers in Amazon’s warehouses are treated appallingly and denied a voice,” Smith said.

AWS is currently under investigation by the UK’s Competition and Markets Authority (CMA) for potential anti-competitive practices. The inquiry follows concerns raised by telecoms regulator Ofcom, which noted that AWS and Microsoft could be leveraging their market dominance to limit competition in the cloud computing sector.

Cloud Computing Growth and AI Infrastructure

Cloud computing has become a crucial part of modern IT infrastructure, providing services such as data storage and computing power on a pay-as-you-go basis. It is especially vital in supporting the development of artificial intelligence (AI) technologies. AWS and Microsoft, two of the largest players in the cloud market, have been accused of preventing customers from switching between providers.

In response to the CMA investigation, AWS stated that the cloud computing market is highly competitive and benefits customers by fostering innovation and offering a wide range of services.

The government has expressed interest in further collaboration with AWS, noting that discussions are ongoing about additional investments in other parts of the UK.

‍