💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Amazon to invest $10 billion in UK data centres

Published 09/10/2024, 07:04 PM
Updated 09/11/2024, 06:17 AM
© Reuters. FILE PHOTO: A logo for Amazon Web Services (AWS) is seen during the Amazon Web Services (AWS) Summit in Paris, France, April 3, 2024. REUTERS/Benoit Tessier/File Photo
AMZN
-

By Supantha Mukherjee

(Reuters) - Internet giant Amazon (NASDAQ:AMZN)'s cloud computing arm, Amazon Web Services, said on Wednesday that it plans to spend 8 billion pounds ($10.45 billion) in the United Kingdom over the next five years to build, operate and maintain data centres.

The company expects the investment project to contribute 14 billion pounds to the country's gross domestic product by the end of 2028 and to support more than 14,000 jobs at British businesses.

The project represents a step-up in the pace of Amazon's investment in Britain. Since 2022 AWS has invested 3 billion pounds in facilities in London and Manchester.

"Our team that builds our data centres globally take into account multiple levers that they have to look at before they can decide where to put data centres ... from power to water to the local environment," Tanuja Randery, a managing director at AWS, told Reuters.

She singled out use of artificial intelligence as among the factors driving demand for cloud services.

AWS has been investing heavily across Europe, announcing a 15.7 billion euros investment in Spain earlier this year and another 7.8 billion euros in Germany.

Analysts and executives say many big corporate customers have started spending again on cloud computing after pausing last year, as interest in artificial intelligence drives a rebound of growth in the $270 billion cloud infrastructure market.

The investment was welcomed by British finance minister Rachel Reeves, who has been courting foreign investors ahead of an investment summit on Oct. 14.

© Reuters. FILE PHOTO: A logo for Amazon Web Services (AWS) is seen during the Amazon Web Services (AWS) Summit in Paris, France, April 3, 2024. REUTERS/Benoit Tessier/File Photo

($1 = 0.7656 pounds)

(This story has been corrected to remove an incorrect reference to future data centre locations after the finance ministry updated its initial statement)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.