Google to pour £5bn pounds into UK AI as tech giants flock to invest in British datacentres

Google has pledged to invest £5bn in the United Kingdom over the next two years, delivering a significant vote of confidence in Britain’s thriving technology sector. The Silicon Valley titan’s announcement aligns with the opening of its new datacentre in Waltham Cross, Hertfordshire, as surging demand for artificial intelligence and cloud computing transforms the competitive landscape.

This bold commitment is expected to create 8,250 jobs annually at companies across the UK, underpinning Chancellor Rachel Reeves’ drive to revive economic growth with targeted investment and sweeping regulatory reform. Google’s investment spans capital expenditure, research and development, and engineering, and will incorporate advanced AI research in science and healthcare under the leadership of its DeepMind subsidiary.

Chief Executive of Google DeepMind, Demis Hassabis, underscored Britain’s longstanding reputation for innovation, stating that the UK’s pedigree – from Turing to Lovelace – positions it as a natural home for trailblazing technology. Google aims to forge partnerships in renewable energy, notably with Shell, to power its British operations sustainably amid growing scrutiny of the sector’s environmental impact.

The investment arrives amidst a flurry of American interest, with OpenAI and Nvidia poised to unveil their own multibillion-pound commitments to UK datacentres. Alphabet, Google’s parent company, recently joined the ranks of the world’s most valuable companies, further amplifying the global race to expand AI infrastructure.

Chancellor Reeves welcomed Google’s move as emblematic of renewed faith in the UK economy, crediting the government’s efforts to cut red tape, modernise planning, and invest in high-growth industries as vital to unlocking new jobs and opportunities nationwide.

With heavyweight US and UK finance executives convening for high-level talks and the backdrop of President Donald Trump’s visit, Britain has become a magnet for world-leading technology and capital, heralding a new era of AI-led growth and discovery.