Amazon to invest $69.5 billion in the UK over next three years

LONDON - Online retail giant Amazon will invest £40 billion (S$69.5 billion) in the UK over the next three years, the government said on June 24, a boost for Prime Minister Keir Starmer as he struggles to kick-start the economy.

Mr Starmer, who met Amazon chief executive Andy Jassy last week, said the announcement “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”.

He added: “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.

“Whether it’s cutting-edge artificial intelligence 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.” The Prime Minister’s “Plan for Change” sets out key milestones his government wishes to achieve.

The £40 billion will be used to build four distribution centres, creating an estimated 4,000 jobs, and to renovate the historic Bray Film Studios, acquired in July 2024.

In December, Amazon signed an agreement with Games Workshop, the British company that owns the rights to popular miniature wargame Warhammer 40,000, to produce films and TV series based on the futuristic fantasy universe.

The project is set to star British actor Henry Cavill, known for his roles in Superman and The Witcher.

The investment also includes part of the £8 billion previously announced in September 2024 for building, operating and maintaining data centres in the UK, aimed at boosting AI computer capacity.

The announcement coincides with the publication of the government’s “Modern Industrial Strategy”, which outlines how the state and high-growth industries will collaborate in the future.

It offers a rare piece of good news for the Labour government, which has been buffeted by US tariffs and global conflicts and seen its domestic policy of tax hikes and public investment fail to deliver on its promise of growth.

Amazon already employs more than 75,000 people in over 100 sites across the UK.

Mr Jassy said the company was “bringing innovation and job creation to communities throughout England, Wales, Scotland and Northern Ireland.

He announced in February that Amazon would invest more than US$100 billion (S$128 billion) in 2025, primarily to boost its cloud and AI capabilities.

Australia was the focus last week, when the US firm announced US$13.3 billion over five years for its data centres, the largest technology investment ever made in the country.

In June, Amazon also announced major investments in North Carolina (US$10 billion) and Pennsylvania (US$20 billion), again for data centres and AI projects.

Amazon is currently under investigation by the UK Food Regulator, suspected of late payments to food suppliers.

If found guilty, Amazon could be fined up to 1 per cent of its annual UK turnover. AFP