Google parent Alphabet is investing $6.8 billion in UK AI infrastructure

Cosmico - Google parent Alphabet is investing $6.8 billion in UK AI infrastructure
Credit: Alphabet, Inc.

Google’s parent company Alphabet has unveiled plans for a £5 billion ($6.8 billion) investment in the United Kingdom’s artificial intelligence sector, offering a significant economic lift just as the country braces for U.S. President Donald Trump’s state visit.

The announcement comes at a pivotal moment for Britain’s Labour government, which has been seeking high-profile international investment to strengthen its economic standing.

A New Data Hub in Waltham Cross

As part of the two-year commitment, Google will open a new state-of-the-art data center in Waltham Cross, just 12 miles north of central London. The facility will support the surging demand for Google’s AI-powered products and services, including Google Cloud, Workspace, Search, and Maps.

According to the company, the investment will generate an estimated 8,250 jobs annually across U.K. businesses, helping to drive growth and skills development in one of the world’s most competitive tech markets.

Strengthening Ties Through AI and Research

The investment also extends to DeepMind, Google’s London-based AI research lab led by Nobel Prize winner Demis Hassabis. DeepMind has been instrumental in advancing cutting-edge AI systems, and the funding will bolster the U.K.’s standing as a global leader in artificial intelligence innovation.

“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,” said Ruth Porat, president and chief investment officer of Alphabet and Google.

U.K. 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.”

Energy Partnership with Shell

Alongside its AI push, Google confirmed a deal with energy giant Shell to oversee its renewable energy supply in Britain. The partnership is aimed at ensuring stability for Google’s expanding network of data centers while contributing to the country’s energy transition.

“Shell’s diverse portfolio of renewable power supply, access to batteries and electricity trading and optimisation expertise enables us to meet the evolving needs of world-leading companies like Google and support the growth of data centres,” said David Wells, Shell’s Executive Vice President.

A Timely Announcement Amid Political Backdrop

The timing of Alphabet’s announcement coincides with Trump’s high-profile state visit, which is expected to bring a flurry of business agreements between U.S. and U.K. companies. For Britain, still recalibrating its role in the global economy, the Google investment offers not just economic relief but also a symbolic reinforcement of transatlantic ties.

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