Google pledges £5 billion UK investment, unveils data centre near London

Google will invest £5 billion in the UK, opening a new data centre near London, creating jobs, backing clean energy plans, and giving a boost to PM Starmer's economic agenda

Google on Tuesday announced plans to invest £5 billion ($6.8 billion) in the United Kingdom, coinciding with US President Donald Trump's state visit, which is expected to bring a wave of business deals and partnerships, news agency Reuters reported.

 

The tech giant also revealed it will open a new data centre near London to meet rising demand for its AI-powered services, including Google Cloud, Search, Maps and Workspace.

 

British Finance Minister Rachel Reeves hailed the move as "a powerful vote of confidence in the UK economy and the strength of our partnership with the US". Google said the investment could generate 8,250 jobs annually across British businesses.   

 

 

Boost for UK government and economy

 

The announcement is expected to bolster Prime Minister Keir Starmer's Labour government, which is aiming to attract private investment to revive economic growth and regain political momentum, Reuters reported.

 

The Trump visit is also anticipated to strengthen economic ties between the UK and the US, with senior US officials suggesting deals exceeding $10 billion may be revealed, the news report said.

 

Partnership with Shell supports energy transition

 

As part of its UK expansion, Google said it has partnered with Shell to support grid stability and the nation’s energy transition. The Waltham Cross data centre, located about an hour from London, features air-cooling technology to cut water usage and can redirect heat to local homes and businesses, reducing environmental impact.

 

Google expects its UK operations, combined with clean energy initiatives and the Shell deal, to operate at or near 95 per cent carbon-free energy by 2026.   

 

Google announces investment of $1 billion for Anthropic

 

In January this year, Google announced its plans to invest more than $1 billion in AI startup Anthropic, according to the Financial Times. This is separate from a $2 billion funding round led by Lightspeed Venture Partners, which valued the company at roughly $60 billion.

 

Anthropic’s annualised revenue is estimated at $875 million, earned through direct access to its models and third-party cloud services like Amazon Web Services. Developing large language models requires high-end computing and top talent. Microsoft-backed OpenAI sparked the AI arms race with the launch of ChatGPT in November 2022, raising $6.6 billion in October and potentially reaching a valuation of $157 billion.