Google has unveiled plans to invest an additional £5 billion in the UK over the next two years, in a move it says will help expand the country’s artificial intelligence economy, create thousands of jobs and accelerate breakthroughs in science and technology.
The announcement coincides with the state visit of US President Donald Trump, during which major technology and energy deals are expected to dominate the agenda.
The investment will include significant spending on Google’s infrastructure, research and engineering teams, as well as support for Google DeepMind, its London-based AI arm. The company said the expansion would generate 8,250 “new AI-driven jobs” in Britain.
Ruth Porat, Google’s president and chief investment officer, confirmed the plans on Tuesday alongside Chancellor Rachel Reeves at the official opening of the company’s first UK datacentre in Waltham Cross, Hertfordshire.
“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,” Porat said.
Reeves hailed the move as “a powerful vote of confidence in the UK economy and the strength of our partnership with the US”.
The expansion of datacentres has raised questions about pressure on the national grid, with the rapid growth of AI demanding vast amounts of computing power. Google said it would work with Shell to store and deploy clean energy, helping to run its UK operations on at or near 95% carbon-free power by 2026.
The new datacentre has been designed to minimise water consumption through advanced air-cooling systems, while surplus heat will be used to provide free energy to local homes, schools and businesses.
Demis Hassabis, co-founder and chief executive of Google DeepMind, said the announcement built on Britain’s longstanding role at the cutting edge of innovation. “The UK has a rich history of being at the forefront of technology — from Lovelace to Babbage to Turing — so it’s fitting that we’re continuing that legacy by investing in the next wave of innovation and scientific discovery in the UK,” he said.
The Hertfordshire opening comes as all of the major technology groups ramp up capital spending on datacentre infrastructure. Google’s capital expenditure rose to $52.5 billion last year, up from $32.3 billion in 2023. Microsoft’s jumped to $44.5 billion in 2024, from $28.1 billion the year before.
Leaders of other US technology firms, including Sam Altman of OpenAI and Microsoft chief executive Satya Nadella, are expected in Britain this week to coincide with the presidential visit. Further announcements on digital infrastructure and energy projects are expected, as the UK seeks to close the gap between its strong scientific credentials and its relatively underpowered digital backbone.
On Monday, the UK government announced a raft of nuclear power initiatives with US partners, designed to help meet soaring demand for electricity as the country pushes forward with AI adoption and the transition to electric vehicles.
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Google pledges £5bn UK investment and opens Hertfordshire datacentre amid Trump visit