AWS has confirmed an £8 billion investment in the UK, prompting the Chancellor of the Exchequer to once again criticise the allegedly dire state of the economy her party inherited from The Conservatives in July 2024.
In an announcement released today, Chancellor Rachel Reeves "confirmed" the five-year plan and welcomed it "as part of her mission to boost growth, unlock investment and make every part of Britain better off".
AWS estimates its investment will contribute £14 billion to the UK’s total Gross Domestic Product (GDP) between 2024 and 2028.
Reeves "secured" the funding last week at a meeting, although we understand that Labour did not necessarily land the investment - but gratefully received it.
She warmly welcomed the AWS plans in a joint statement with a characteristic chill at its heart, taking the chance to once again put the boot into her predecessors.
Labour has repeatedly criticised the previous government's handling of the economy and made contested claims to have inherited a £22 billion "black hole" in the national finances.
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The Chancellor said: "I am under no illusion to the scale of the challenge facing our economy and I will be honest with the British people that change will not happen overnight. Two-quarters of positive economic growth does not make up for fourteen years of stagnation under the previous government.
"However, this £8 billion 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."
The investment will support roughly 14,000 jobs at "local businesses, including those across the company’s data centre supply chain such as construction, facility maintenance, engineering and telecommunications".
Tanuja Randery, Amazon Web Services Vice President and Managing Director, Europe, Middle East & Africa (EMEA), 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 it accelerate innovation, increase productivity, and compete on the global stage."
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We spoke to insiders behind the scenes to learn a little more about the Chancellor's involvement in securing the investment.
Taking a leaf from the Chancellor, we asked if the investment came about as the result of negotiations which took place under the Conservative government, but neither AWS nor The Treasury could tell us.
However, we do not believe it came about as the result of Westminster lobbying AWS - meaning that neither the Tories nor Labour can take particular credit for the investment.
Our understanding is that the hyperscaler independently made its own plans to invest in the UK, before putting them to Chancellor Reeves, holding a meeting to gain her backing and then making a joint announcement.
The arrangement is not a commercial deal with the UK. As such, the Chancellor's main role may have been to support the plans and hail them as evidence that things can only get better for Britain's sluggish economy.
Although there is always a chance that meetings can go very awry, so the fact that we're hearing about this investment shows that Chancellor Reeves has clearly been doing something right.
“This investment is part of the company’s long-term commitment to help meet the growing needs of our customers and partners, and support the transformation of the UK's digital economy," an AWS spokesperson said.
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