Chancellor Rachel Reeves secured the planned five-year investment last week at a meeting with AWS.
The investment is estimated to support around 14,000 jobs per year at local businesses, including those across the company’s data centre supply chain such as construction, facility maintenance, engineering and telecommunications, as well as other jobs within the broader local economy.
AWS estimates that these investments in the UK will contribute £14bn to the UK’s total GDP from 2024 to 2028.
In a statement, Reeves said: “This £8bn investment marks the start of the economic revival and shows Britain is a place to do business. I am determined to go further so we can deliver on our mandate to create jobs, unlock investment and make every part of Britain better off. The hard work to fix the foundations of our economy has only just begun.”
Amazon Web Services vice president and managing director, Europe, Middle East & Africa (EMEA), Tanuja Randery said: “The next few years could be among the most pivotal for the UK’s digital and economic future, as organisations of all sizes across the country increasingly embrace technologies like cloud computing and AI to help them accelerate innovation, increase productivity, and compete on the global stage.”
Reeves’ announcement has been followed today (September 12, 2024) by news that data centres will be designated as Critical National Infrastructure (CNI).
With CNI status, the Department of Science, Innovation and Technology (DSIT) said data centres sector can now expect greater government support in recovering from and anticipating critical incidents.
One element of CNI designation will see the establishment of a dedicated CNI data infrastructure team of senior government officials who will monitor and anticipate potential threats, provide prioritised access to security agencies including the National Cyber Security Centre, and coordinate access to emergency services should an incident occur.
Commenting on today’s announcement, Phil Burr, director at Lumai, said: “This move recognises the crucial role datacenters play in the UK’s economy and in national security, particularly given the importance of data centres in providing the computation needed for AI. Robust infrastructure is crucial for advanced AI research and deployment, meaning the CNI designation will help cement the UK’s position as a leader in AI research and development. The move could attract even more investment in the UK's datacenter and AI industry due to the extra protection offered.”
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