Google has announced plans to invest £5 billion in the UK over the next two years to aid the government and address the increasing demand for artificial intelligence services.
With the opening of a new data centre in Waltham Cross, Hertfordshire, this investment is anticipated to create thousands of jobs.
Prime Minister Rachel Reeves is focusing on stimulating growth amid challenges facing the UK economy, stating that research and development, capital expenditures, and engineering investments are a show of “voting for trust” in the UK economy.
US President Donald Trump began his official state visit to the UK on Tuesday, coinciding with announcements of significant investments in UK data centres from ChatGpt parent OpenAI and chipmaker Nvidia.
On Tuesday, Google disclosed that it plans to allocate £5 billion towards capital expenditures, research and development, and associated engineering efforts over the coming two years, which includes “pioneering” AI research in science and healthcare via Google Deepmind.
The Silicon Valley firm stated that the investment will foster the UK’s AI economy, spearheading technological advancements, enhancing cybersecurity, and generating jobs.
Google anticipates that the investment will create 8,250 jobs annually for UK companies.
Reeves will formally inaugurate the company’s first UK data centre at Waltham Cross on Tuesday, responding to rising demand for Google’s cloud, workspace, search, and map services.
Google has also announced a partnership with Shell to manage the UK’s renewable energy resources.
According to The Guardian, the new Google DataCentre in Essex is projected to emit over 500,000 tonnes of CO2 each year.
Reeves will also facilitate a meeting with leaders of top US and UK financial companies on Tuesday, jointly hosted with US Treasury Secretary Scott Bescent and attended by senior representatives from BlackRock, Barclays, and Blackstone.
Trump is set to visit the UK for two days starting Wednesday, featuring several business sessions and a state banquet with prominent tech leaders and senior ministers. The US President will subsequently head to Checker on Thursday for a business reception, lunch, and press conference with Keir Starmer.
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Google’s £5 billion investment aims to mobilize approximately $850 billion from investors in July for the 2025 fiscal year, reflecting a significant rise in capital expenditure budgets compared to previous £750 billion forecasts.
On Monday, parent company Alphabet joined the ranks of firms beyond the $30 billion market cap, alongside giants like Nvidia, Microsoft, and Apple.
Alphabet’s shares surged earlier this month following a court decision that softened the most stringent rulings sought by US competition regulators, including the potential forced sale of Chrome browsers.
Reeves commented: “Google’s £5 billion investment is a considerable display of confidence in the UK economy and the robustness of its partnership with the US, promising job creation and economic growth in the coming years.
“This government is reversing decades of neglect that have restricted our growth by addressing the burdensome deficit, implementing transformational reforms in our planning systems, and investing in advanced technologies to unlock better employment opportunities.”
“We’re committed to delivering a range of services to our clients,” said Demis Hassabis, co-founder and CEO of Google Deepmind.
“The UK has a rich tradition of being at the forefront of technological advancement, from Lovelace to Babbage and Turing, making it fitting for its legacy to continue by investing in the next wave of innovation and scientific discovery in the UK.”
Source: www.theguardian.com
