Amazon to invest £40bn in UK over next 3 years

AMAZON will invest £40 billion in the United Kingdom over the next three years, the government said on Tuesday. The announcement comes as prime minister Keir Starmer seeks to attract investment and revive economic growth.

Starmer met Amazon CEO Andy Jassy last week and welcomed the development, calling it “a massive vote of confidence in the UK as the best place to do business.”

“It means thousands of new jobs – real opportunities for people in every corner of the country to build careers, learn new skills, and support their families,” he said. “Whether it's cutting-edge AI or same-day delivery, this deal shows that our Plan for Change is working – bringing in investment, driving growth, and putting more money in people's pockets.”

New sites and job creation

According to the government, the investment will be used to build four new distribution centres, expected to create around 4,000 jobs. It will also be used to renovate Bray Film Studios, which Amazon acquired in July 2024.

Part of the total includes a portion of the £8 billion investment Amazon had announced in September 2024 for the construction, operation and maintenance of data centres in the UK, intended to support artificial intelligence computing needs.

In December, Amazon signed an agreement with Games Workshop, the British company behind “Warhammer 40,000”, to produce films and television series based on the franchise. The project is expected to feature actor Henry Cavill.

‘On the right track’

The announcement aligns with the release of the government’s “Modern Industrial Strategy”, outlining plans for collaboration between the state and high-growth industries.

Business and trade secretary Jonathan Reynolds will visit Amazon’s London headquarters on Tuesday to mark the investment.

“Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, and seeing massive international firms like Amazon bank on Britain shows we are on the right track,” Reynolds said.

Amazon’s UK presence

Amazon currently employs more than 75,000 people across more than 100 sites in the UK.

Jassy said, “Amazon has been proud to serve our customers in the UK for the past 27 years. Thanks to their support, we've grown to be part of over 100 communities nationwide, from developing drone technology in Darlington to producing world-class entertainment at our studios in Bray.”

He added, “We’re bringing innovation and job creation to communities throughout England, Wales, Scotland, and Northern Ireland.”

Global investments and ongoing probe

In February, Jassy announced Amazon would invest more than $100 billion globally in 2025, with a focus on expanding its cloud and AI capabilities.

Last week, Amazon announced a $13.3bn investment over five years in Australia, aimed at its data centre operations. It marked the country’s largest-ever technology investment.

In June, Amazon also made announcements of large-scale investments in North Carolina ($10bn) and Pennsylvania ($20bn), both for data centres and AI-related projects.

Meanwhile, Amazon is under investigation by the UK Food Regulator over suspected late payments to food suppliers. If found guilty, the company could face a fine of up to one per cent of its annual UK turnover.

(With inputs from agencies)