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Amazon is set to inject £40 billion ($54 billion) into the UK economy over the next three years, according to a government announcement on Tuesday, offering a major boost to Prime Minister Keir Starmer as he seeks to revive the country’s sluggish economic growth.
Starmer, who recently met Amazon chief executive Andy Jassy, hailed the announcement as a significant endorsement of Britain’s appeal to global business. “This 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 said.
The investment is expected to create thousands of jobs and new opportunities for workers across the country. “Whether it’s cutting-edge AI 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,” Starmer added.
The £40 billion package will fund the construction of four new distribution centres, generating around 4,000 jobs. It will also finance the renovation of Bray Film Studios, which Amazon acquired in July 2024.
In a separate deal struck last December, Amazon signed an agreement with British firm Games Workshop to develop television and film adaptations of the popular Warhammer 40,000 franchise. The project is set to star Henry Cavill, known for his roles in Superman and The Witcher.
Part of the new funding will go towards an £8 billion investment originally announced in September 2024, aimed at expanding Amazon’s network of data centres in the UK to strengthen its artificial intelligence (AI) capabilities.
The announcement coincides with the release of the government’s Modern Industrial Strategy, which outlines plans for collaboration between the state and high-growth industries to drive future prosperity.
The news offers some welcome relief for the Labour government, which has faced economic headwinds from international trade disputes, global conflicts, and domestic criticism over rising taxes and underwhelming growth.
Business and Trade Secretary Jonathan Reynolds visited Amazon’s London headquarters on Tuesday to mark the announcement. “Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, and seeing massive international firms like Amazon bank on Britain shows we are on the right track,” he said.
Amazon already employs more than 75,000 people at over 100 locations across the UK. Jassy said the company was committed to supporting communities throughout England, Wales, Scotland, and Northern Ireland.
“Amazon has been proud to serve our customers in the UK for the past 27 years. Thanks to their support, we’ve grown to be part of over 100 communities nationwide, from developing drone technology in Darlington to producing world-class entertainment at our studios in Bray,” Jassy said.
Earlier this year, Jassy revealed that Amazon planned to invest over $100 billion globally, focusing heavily on expanding its cloud computing and AI operations. In recent weeks, the company announced major investments in Australia ($13.3 billion), North Carolina ($10 billion), and Pennsylvania ($20 billion), primarily for data centres and AI infrastructure.
However, Amazon is currently under investigation by the UK Food Regulator over allegations of late payments to food suppliers. If found guilty, the company could face a fine of up to one percent of its annual UK turnover.
