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Google to invest $1bn in UK data centre

“Google’s investment is testament to the fact that the UK is a centre of excellence in technology,” says Sunak

Google to invest $1bn in UK data centre

GOOGLE will invest $1 billion on building a data centre just outside of London, the US technology giant said on Thursday (18), in its latest investment in Britain as it meets growing demand for internet services in the region.

The data centre, located on a 33-acre (13-hectare) site bought by Google in 2020, will be located in the town of Waltham Cross, about 15 miles north of central London, the Alphabet-owned company said in a statement.


The British government, which is pushing for investment by businesses to help fund new infrastructure, particularly in growth industries like technology and artificial intelligence, described Google's investment as a "huge vote of confidence" in the UK.

"Google's $1bn investment is testament to the fact that the UK is a centre of excellence in technology and has huge potential for growth," prime minister Rishi Sunak said in the Google statement.

The investment follows Google's $1bn purchase of a central London office building in 2022, close to Covent Garden, and another site in nearby King's Cross, where it is building a new office and where its AI company DeepMind is also based.

It also comes weeks after Microsoft unveiled plans to pump $3.2bn into Britain over three years, including in growing its data centre capacity, to underpin future AI services.

"This new data centre will help meet growing demand for our AI and cloud services and bring crucial compute capacity to businesses across the UK while creating construction and technical jobs," Alphabet chief financial officer Ruth Porat said in the statement.

Google, which employs over 7,000 people in Britain, also said that waste heat generated from the data centre would be an opportunity for energy conservation that can benefit the local community.

(Reuters)

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Under the policy, property owners will face a recurring annual charge additional to existing council tax liability.

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Rachel Reeves announces annual tax on homes worth over £2 million

Highlights

  • New annual surcharge on homes worth over £2 m comes into force in April 2028, rising with inflation.
  • Tax starts at £2,500 for properties valued £2m-£2.5m, reaching £7,500 for homes worth £5m or more.
  • London and South East disproportionately affected, with 82 per cent of recent £2m-plus sales in these regions.
Britain has announced a new annual tax on homes worth more than £2 million, expected to raise £400 million by 2029-30, according to estimates from the Office for Budget Responsibility.

Chancellor Rachel Reeves pointed that the measure would address "a long-standing source of wealth inequality in our country" by targeting "less than the top 1 per cent of properties". The surcharge will come into force in April 2028.

Under the policy, property owners will face a recurring annual charge additional to existing council tax liability. The rate starts at £2,500 for homes valued between £2 m and £2.5 m, rising to £3,500 for properties worth £2.5 m to £3.5 m, £5,000 for £3.5 m to £5 m, and £7,500 for those valued at £5 m or more.

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