Google has said it will invest £5bn in the UK in the next two years to help meet growing demand for artificial intelligence services, in a boost for the government.
The announcement, which comes as Google opens its new datacentre in Waltham Cross in Hertfordshire, is expected to contribute to the creation of thousands of jobs, the US tech company said.
The chancellor, Rachel Reeves, said the major investment into research and development, capital expenditure and engineering is a “vote of confidence” in the UK economy.
It also follows reports that the ChatGPT parent firm, OpenAI, and Nvidia will also announce billions of dollars’ worth of investment into UK datacentres this week, amid Donald Trump’s state visit.
On Tuesday, Google said it would pump £5bn into capital expenditure, research and development, and related engineering over the next two years, which would include “pioneering” AI research in science and healthcare through its Google DeepMind operation.
The Silicon Valley company said the investment would help the UK grow its AI economy and contribute to technological breakthroughs, improvements in cybersecurity and job creation.
Google predicted the investment would help to create 8,250 jobs annually at UK businesses.
Reeves will officially open the company’s first UK datacentre in Waltham Cross on Tuesday, amid growing demand for Google’s Cloud, Workspace, Search and Maps services.
She will also host the bosses of top US and UK financial companies in Downing Street on Tuesday. The meeting will be attended by senior figures from BlackRock, Barclays and Blackstone.
She said: “Google’s £5bn investment is a powerful vote of confidence in the UK economy and the strength of our partnership with the US, creating jobs and economic growth for years to come.
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“This government is reversing decades of underinvestment that has held us back for too long, by slashing burdensome red tape, delivering bold reforms of the planning system and investing in better tech to unlock better jobs and opportunities.”
The Google DeepMind co-founder and chief executive, Demis Hassabis, said: “We founded DeepMind in London because we knew the UK had the potential and talent to be a global hub for pioneering AI.
“The UK has a rich history of being at the forefront of technology – from Lovelace to Babbage to Turing – so it’s fitting that we’re continuing that legacy by investing in the next wave of innovation and scientific discovery in the UK.”