UK’s digital economy gets £40bn boost as Amazon plans data centres and fulfilment network expansion

Amazon has unveiled a landmark £40 billion investment plan in the United Kingdom, aimed at significantly expanding its logistics, cloud infrastructure, and workforce presence across the country between 2025 and 2027. The tech and e-commerce giant said the investment will create thousands of new full-time jobs and inject an estimated £38 billion into the UK’s gross domestic product (GDP), making it one of the largest international capital commitments in the post-pandemic British economy.

The investment was announced on June 24, 2025, in the same week that the UK government rolled out its new Industrial Strategy, which outlines a national roadmap for advanced technology adoption, infrastructure renewal, and workforce development. The timing underscores alignment between Amazon’s expansion plans and Britain’s broader economic transformation agenda.

Amazon plans to build four new fulfilment centres in Hull, Northampton, and the East Midlands, alongside new delivery stations and upgrades to its existing network of more than 100 logistics sites. The Hull and Northampton sites alone will employ 4,000 workers, with several thousand more roles anticipated across the broader fulfilment and delivery network.

How is Amazon’s latest investment aligned with the UK’s industrial strategy and digital transformation goals?

According to Prime Minister Keir Starmer, Amazon’s £40 billion investment is a powerful endorsement of the UK’s renewed business climate. He described it as a “massive vote of confidence” in Britain’s potential as a global innovation hub, especially in areas like artificial intelligence, digital logistics, and renewable-powered infrastructure.

The investment package includes ongoing development of Amazon’s cloud and AI footprint, notably through the previously announced £8 billion commitment (2024–2028) to build, maintain, and operate Amazon Web Services (AWS) data centres across the UK. These facilities are expected to significantly scale the UK’s AI compute capacity, supporting the growing demand for generative AI and machine learning capabilities among public and private sector customers alike.

Institutional observers point to Amazon’s move as a key benchmark for international investor sentiment, with Britain’s recent GDP growth, stabilising interest rates, and new trade agreements with the European Union, the United States, and India helping position the country as a compelling destination for high-value technology investments.

What types of jobs and training opportunities will Amazon’s UK expansion bring to local economies?

Amazon said the investment will result in thousands of new full-time, permanent jobs, with a focus on technical and skilled roles outside London and the South East. New roles will range from robotics technicians and safety experts to mechatronics engineers and cloud infrastructure specialists. Amazon is also offering over 1,000 new full-time apprenticeship roles in 2025, expanding on the more than 5,000 apprenticeships created in the UK since 2013.

Wages remain competitive, with a minimum of £28,000 per year (£30,000 in London) for full-time employees, along with a benefits package that includes access to career progression programmes. One of Amazon’s flagship initiatives, Career Choice, pays up to £8,000 toward training in high-demand fields such as environmental technology, human resources, and HGV driving. More than 23,000 UK employees have participated in the programme to date.

Earlier in 2025, Amazon also committed to support the UK government’s ambition of training 7.5 million workers in AI skills by 2030, partnering with institutions like the University of Exeter and University of Manchester through its Skills to Jobs Tech Alliance. That programme aims to reach 100,000 people by the end of the decade.

How is Amazon expanding AI and cloud infrastructure in the UK to meet enterprise and government demand?

The company’s £8 billion investment in AWS infrastructure is positioned to meet a growing national demand for AI compute power and cloud-based applications. UK customers already have access to AI-optimized chips and can build and deploy complex machine learning models through AWS services.

Between 2024 and 2028, the AWS data centre programme is expected to add £14 billion to the UK’s GDP and support an average of 14,000 full-time equivalent jobs annually—many within small and medium-sized businesses in the data centre supply chain. With over one UK business reportedly adopting AI every minute, the investment comes at a time of rapid enterprise digitisation and government-backed AI adoption initiatives.

How is Amazon contributing to the UK’s creative economy and cultural footprint?

In addition to logistics and cloud infrastructure, Amazon is deepening its investment in the UK’s creative industries. The American tech conglomerate has already invested over £4.2 billion in British film, music, publishing, and gaming since 2010. That includes acquiring the historic Bray Film Studios in Berkshire and signing a long-term contract with Shepperton Studios for the exclusive use of new production spaces.

Recent productions include The Lord of the Rings: The Rings of Power, Guy Ritchie’s Young Sherlock, and Harlan Coben’s Lazarus. Amazon’s Prime Video Pathway initiative—a £10 million training fund—also supports freelancer development and talent incubation in the UK media sector.

What role will sustainability and community support play in Amazon’s UK expansion strategy?

Sustainability forms a critical pillar of Amazon’s broader operational footprint in the UK. The company recently placed the nation’s largest-ever electric HGV order, with more than 140 electric trucks scheduled to join its delivery fleet by the end of 2025. These vehicles are expected to move more than 300 million packages annually with zero tailpipe emissions.

Amazon also remains the world’s largest corporate buyer of renewable energy and has invested in more than 40 wind and solar projects across the UK. These projects are forecast to deliver approximately 950 MW of new carbon-free electricity capacity—enough to power 860,000 homes.

On the community front, Amazon continues to scale its Multibank initiative, co-founded with former Prime Minister Gordon Brown. These local hubs distribute essential donated goods—like toiletries, crockery, and clothing—to vulnerable families through local charities and public service providers. Six Multibanks are now operational, including a new site in the West Midlands.

What does this mean for UK investment and industrial sentiment in 2025?

Institutional investors and government leaders are interpreting Amazon’s £40 billion commitment as a significant catalyst for regional economic growth, job creation, and infrastructure development in the UK. As Business and Trade Secretary Jonathan Reynolds noted, it adds to the £100 billion of private sector investment secured in the past year under the government’s new “Plan for Change.”

Amazon’s presence in over 100 UK communities—and its dual focus on AI innovation and workforce upskilling—may serve as a model for future inward investment strategies. With stable macroeconomic signals, lower interest rates, and a renewed industrial strategy, Britain’s business environment is becoming increasingly competitive in the post-Brexit era. Amazon’s move appears to signal that the UK remains a global magnet for tech-driven growth.