Google will invest £5bn in the UK over the next two years to meet rising demand for artificial intelligence, in a move hailed by Chancellor Rachel Reeves as a “vote of confidence” in the economy.
The funding, which coincides with the opening of Google’s first UK data centre in Waltham Cross, will go towards research and development, capital projects and engineering.
The company said the expansion would support AI research through its DeepMind unit, improve cybersecurity and generate thousands of jobs, predicting the investment could create 8,250 roles annually at UK businesses.
Reeves, who is seeking to boost growth, welcomed the announcement as she prepares to meet global financial executives in London this week. Alphabet, Google’s parent company, recently joined Microsoft, Apple and Nvidia in surpassing a $3tn market value.
Demis Hassabis, DeepMind’s chief executive, said the UK’s legacy in computing made it the “fitting” base for Google’s latest AI push.