Amazon To Invest $10.5B in UK Over Next 5 Years in Cloud, AI Push

  • December 1, 2024
  • Category: Blockchain
Amazon To Invest $10.5B in UK Over Next 5 Years in Cloud, AI Push
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KEY TAKEAWAYS

  • Amazon said it plans to spend 8 billion pounds ($10.5 billion) to build and operate data centers in the U.K. over the next five years through 2028.
  • The buildout marks a massive expansion of Amazon’s cloud and artificial intelligence (AI) infrastructure.
  • Amazon Web Services (AWS), a key driver of the tech giant’s growth, will contribute 14 billion pounds to the country’s GDP in that span and support around 14,000 jobs annually, Amazon said.

Amazon ( AMZN ) said it plans to spend 8 billion pounds ($10.5 billion) to build and operate data centers in the U.K. over the next five years through 2028, in a massive expansion of its cloud and artificial intelligence (AI) infrastructure.

Amazon Web Services (AWS) , a key driver of the tech giant’s growth, will contribute 14 billion pounds to the country’s GDP in that span and support around 14,000 jobs annually, Amazon said.

Analysts Project Over $1T in AI Spending By Big Tech in Coming Years

AWS reported last month that second-quarter revenue jumped 19% year-over-year and analysts have said that gains could continue this year on strong demand for cloud storage and AI.

Amazon isn’t alone among the big tech firms ramping up AI-related spending. Goldman Sachs analysts have projected that big tech companies, including Amazon and Microsoft ( MSFT ), are set to collectively spend over $1 trillion on AI over the next five years to meet burgeoning demand.

Amazon shares were little changed in early trading Wednesday and have gained about 17% since the start of the year.

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