Google has announced plans to invest £5bn in the United Kingdom over the next two years to meet growing demand for artificial intelligence services, in a move the government has hailed as a major boost for the economy.
The investment coincides with the opening of the company’s first UK datacentre in Waltham Cross, Hertfordshire, which Chancellor Rachel Reeves will officially inaugurate on Tuesday. The US technology giant said the funding will be directed towards capital expenditure, research and development, and engineering, including AI research in science and healthcare through its London-based Google DeepMind division.
Google said the programme would support the creation of 8,250 jobs annually at UK businesses and contribute to advances in cybersecurity, technological innovation and the expansion of the country’s AI economy.
Reeves described the announcement as “a powerful vote of confidence in the UK economy and the strength of our partnership with the US”, adding that the government was committed to reversing “decades of underinvestment” through reforms to planning, reductions in regulatory burdens and investment in technology.
The announcement comes ahead of a two-day state visit to the UK by US president Donald Trump, who will attend a series of business events, including a state banquet with technology executives and senior ministers on Wednesday evening. On Thursday, he will meet Prime Minister Keir Starmer at Chequers for a business reception, working lunch and press conference.
Other major US technology firms are also expected to unveil significant UK investments this week. Reports suggest that OpenAI, the developer of ChatGPT, and chipmaker Nvidia will announce multi-billion-dollar commitments to British datacentres.
Google confirmed it would partner with Shell to manage its renewable energy supply in the UK. However, environmental concerns have been raised after The Guardian reported that a separate Google datacentre in Essex is projected to emit more than 500,000 tonnes of carbon dioxide annually.
The Waltham Cross facility will support growing demand for Google’s Cloud, Workspace, Search and Maps services. The company’s parent, Alphabet, this week became the fourth business to surpass a $3tn market capitalisation, joining Nvidia, Microsoft and Apple. Alphabet’s shares have risen sharply in recent weeks following a US court ruling that avoided the most severe penalties sought by competition regulators, including the forced sale of its Chrome browser.
Google’s £5bn commitment forms part of a wider increase in its capital expenditure budget. In July, the company told investors it expected to spend about $85bn in its 2025 financial year, up from a previous estimate of $75bn.
Demis Hassabis, co-founder and chief executive of Google DeepMind, said: “We founded DeepMind in London because we knew the UK had the potential and talent to be a global hub for pioneering AI. The UK has a rich history of being at the forefront of technology, from Lovelace to Babbage to Turing, so it’s fitting that we’re continuing that legacy by investing in the next wave of innovation and scientific discovery in the UK.”
