Quick overview

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E-commerce and cloud computing giant Amazon saw its stock climb 2% on Wall Street after announcing a massive $55 billion investment in Europe aimed at expanding its e-commerce operations and strengthening its position in the fast-growing artificial intelligence (AI) industry.

Specifically, Amazon plans to invest £40 billion (approximately $51 billion) in the United Kingdom between 2025 and 2027. The investment will fund the construction of new logistics data centers and delivery stations across the country, as well as the modernization and expansion of its existing network of 100 operational facilities.

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Amazon Doubles Down on Technology

Of the total, £8 billion will be allocated to the construction, operation, and maintenance of data centers in the U.K. to drive national productivity and digital infrastructure.

According to estimates, the investment is expected to contribute £14 billion to the U.K.’s gross domestic product (GDP) through 2028 and support over 14,000 full-time jobs.

“The coming years could be pivotal for the U.K.’s digital and economic future, as organizations of all sizes increasingly embrace technologies like cloud computing and AI to accelerate innovation, boost productivity, and compete globally,” said Tanuja Randery, Vice President and General Manager of Amazon Web Services (AWS) for Europe, the Middle East, and Africa (EMEA).

“We’re proud to announce plans to invest £8 billion in digital and AI infrastructure over the next five years to meet the growing needs of our customers and partners, and to support the U.K.’s digital transformation,” she added.

The Benefits of Cloud and AI

Amazon’s decision to make such a large bet on technology is underpinned by the significant impact cloud computing is already having in the U.K. In 2023 alone, the cloud sector contributed over £42 billion to the British economy—surpassing even the automotive industry, according to research by Telecom Advisory Services.

To further understand this impact, AWS commissioned Public First to conduct a survey of more than 2,000 British business leaders. The findings highlight how companies are leveraging cloud and AI to drive growth.

Cloud computing has emerged as a key driver of economic development by democratizing access to advanced technologies. It allows startups, SMEs, and public institutions to innovate, reduce costs, and compete on a global scale.

According to the report, 84% of AWS customers surveyed reported average cost savings of 28% compared to traditional IT infrastructure. Additionally, cloud adoption shortened software deployment times by 27%.

Furthermore, 82% said the cloud facilitated their international expansion, and 85% stated it improved their ability to compete with larger firms. Beyond financial benefits, 78% also reported improved energy efficiency and sustainability as a result of moving to the cloud.