Amazon Bets Big on Britain with a $54 Billion Expansion Investment

eCommerce giant Amazon has committed to invest $54 billion in the UK, CNBC has reported. Amazon’s investment in Britain, which will be spread over a three year period, will be spent on establishment of four new fulfillment centers as well as upgrading and expanding Amazon’s warehouses in the UK.

Major Economic Boost

The government views Amazon’s investment in the UK economy as a boost for Prime Minister Keir Starmer’s administration that is struggling to jumpstart the economy. In recent months, the British government has been approaching leading tech companies to invest in the UK as it seeks to spur domestic productivity and growth.

UK’s gross domestic product dropped by 0.3% in April after local taxes rose and President Donald Trump’s tariffs took effect. Starmer held a meeting with Amazon CEO Andy Jassy last week.

“Amazon’s £40 billion investment adds another major win to Britain’s basket and is 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,” Starmer said.

According to Prime Minister Starmer, the investment from Amazon is proof that the growth plan initiated by his administration is working.

“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,” he added.

The investment is set to generate about 4000 new Amazon jobs in Hull and Northampton. Amazon said 2,000 people will be hired in different roles at a fulfillment center it previously established in Hull. An additional 2,000 others will be hired to work in another center in Northampton.

Big Plans

Amazon plans to leverage the new investment to set up two new buildings at its East London headquarters. It also plans to enhance transport infrastructure across the UK and renovate the Bray Film Studios in Berkshire, which it purchased last year.

The new funding includes the £8 billion AWS UK data centre investment that the ecommerce giant announced in September 2024 to boost AI capacity in the UK. The amount will be spent on construction, operation, and maintenance of data centers in the UK.

Amazon isn’t the only tech giant that is investing in the UK. Early this month, TikTok unveiled plans to set up a new office in London. Nvidia CEO Jensen Huang also termed the country as a great place to invest

Expanding Collaborations

Amazon’s investment comes at a time when the UK government published the Modern Industrial Strategy. This strategy highlights how the government will collaborate with high-growth industries in future.

“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 in Britain shows we are on the right track,” UK Trade Secretary Jonathan Reynolds said.

Amazon has a workforce of more than 75,000 employees across 100 sites in the UK. According to Jassy, the company is “bringing innovation and job creation to communities throughout England, Wales, Scotland, and Northern Ireland.”

In February this year, the company announced that it will be investing over $100 billion to enhance its AI and cloud capabilities. Last week, Australia came to the spotlight after the ecommerce giant announced that it will be investing $13.3 billion in the coming five years.

This is the largest tech investment that has been made in the country. The investment is aimed at establishing data centers and expanding AI capabilities in the country. Early this month, the tech giant committed to invest $10 billion in North Carolina and $20 billion in Pennsylvania for AI and data center projects.