Google commits £5bn to UK in major AI and research expansion

Alphabet has unveiled a two-year £5bn investment package spanning data centres, DeepMind, and clean energy projects, with Chancellor Rachel Reeves calling it a “vote of confidence” in Britain’s economy. The tech giant says the funding will generate more than 8,000 jobs a year and strengthen the UK’s role as a global AI hub

Google’s parent company Alphabet has confirmed a £5 billion investment in the UK to expand its artificial intelligence operations, infrastructure and scientific research.

The two-year programme was announced as Chancellor Rachel Reeves opened Google’s new data centre in Waltham Cross, Hertfordshire. The facility will support the company’s AI-driven services including Google Cloud, Workspace, Search and Maps, and forms part of a broader package of capital expenditure, research and development, and engineering investment.

The commitment also covers London-based DeepMind, the AI lab founded by Nobel Prize winner Sir Demis Hassabis. DeepMind has pioneered the use of AI in fields ranging from healthcare to advanced science, and will receive a share of the funding to accelerate further breakthroughs.

Google said the £5bn package is expected to generate 8,250 jobs annually across UK businesses, both directly and through supply chains. The company added that the investment will strengthen Britain’s position as a global hub for artificial intelligence at a time of growing international competition.

Reeves described the move as “a powerful vote of confidence in the UK economy and the strength of our partnership with the U.S, creating jobs and economic growth for years to come.” She said the government was “reversing decades of underinvestment” and building an economy that “rewards working people.”

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.

“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. Through our Plan for Change we are building an economy that works for, and rewards, working people.

“With today’s announcement, Google is deepening our roots in the UK and helping support Great Britain’s potential with AI to add £400 billion to the economy by 2030 while also enhancing critical social services.”

Alphabet president and chief investment officer Ruth Porat said the funding would help the UK realise its “potential with AI to add £400 billion to the economy by 2030,” while ensuring that the benefits of new technologies extend beyond the tech sector into “critical social services.”

Energy and sustainability form a major part of the package. Google has agreed a partnership with Shell Energy Europe to manage a portfolio of power that balances clean energy supply with storage. The company said the arrangement would improve grid stability, support the UK’s energy transition, and help ensure its operations run on around 95% carbon-free energy by 2026.

The Waltham Cross site itself has been designed with efficiency in mind. It uses advanced air-cooling to minimise water consumption and has been equipped for off-site heat recovery, enabling waste heat from the facility to be re-used to help warm local homes, schools and businesses.

Alongside the physical investment, Google said it would continue its focus on skills. The company has trained more than one million people in the UK over the past decade and is part of a wider industry partnership, launched in July, that aims to equip 7.5 million Britons with digital and AI skills by 2030. In Hertfordshire, a new Community Fund will be overseen by Broxbourne Council to support local economic development and charities including CHEXS, Community Alliance Broxbourne & East Herts, Hertfordshire Community Foundation and SPACE Hertfordshire.

Council leader Corina Gander said Google had made “an important contribution to the local economy” and praised the company’s support for community projects alongside its investment in infrastructure.

The announcement comes as the UK prepares for a wave of new US investment linked to President Donald Trump’s state visit. Several American technology firms are expected to follow Google in confirming multi-billion-pound commitments during the week, underlining Britain’s push to secure its place at the forefront of global innovation.