Amazon Web Services (AWS) will invest £8bn in the UK to build datacentres that will support customers in London and the west of England, as announced by Rachel Reeves on Wednesday. The investment is projected to create up to 14,000 jobs at Amazon and local businesses, contributing to the UK’s “long-term mission to boost growth,” according to the chancellor. Employment opportunities will be generated across sectors including construction, facility maintenance, engineering, and telecommunications.
AWS expects its investment to contribute £14bn to the UK’s GDP from 2024 to 2028, marking a significant boost to the economy. Reeves acknowledged the challenges facing the economy but viewed this as the beginning of economic recovery, positioning Britain as an attractive place for business.
However, the announcement comes amid expected job losses at the Port Talbot steelworks in South Wales, where 2,500 jobs may be cut despite a £500m taxpayer-backed rescue deal. Additionally, the GMB union expressed skepticism about celebrating AWS, citing Amazon’s controversial working conditions, limited tax contributions, and its failure to recognize unions.
AWS also faces scrutiny from the UK’s Competition and Markets Authority (CMA), which is investigating concerns about the company’s dominance in the cloud computing market. Critics argue AWS may be using its market power to limit competition, while AWS defends the market as dynamic and competitive.
Despite the potential challenges, the government remains in talks with AWS about further investments in other parts of the UK, although specific details about the location of new datacentres have not been disclosed for security reasons.