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KEY TAKEAWAYS
- Amazon said it plans to spend 8 billion pounds ($10.5 billion) to build and operate data centers in the U.K. over the next five years through 2028.
- The buildout marks a massive expansion of Amazon’s cloud and artificial intelligence (AI) infrastructure.
- Amazon Web Services (AWS), a key driver of the tech giant’s growth, will contribute 14 billion pounds to the country’s GDP in that span and support around 14,000 jobs annually, Amazon said.
Amazon (AMZN) said it plans to spend 8 billion pounds ($10.5 billion) to build and operate data centers in the U.K. over the next five years through 2028, in a massive expansion of its cloud and artificial intelligence (AI) infrastructure.
Amazon Web Services (AWS), a key driver of the tech giant’s growth, will contribute 14 billion pounds to the country’s GDP in that span and support around 14,000 jobs annually, Amazon said.
Analysts Project Over $1T in AI Spending By Big Tech in Coming Years
AWS reported last month that second-quarter revenue jumped 19% year-over-year and analysts have said that gains could continue this year on strong demand for cloud storage and AI.
Amazon isn’t alone among the big tech firms ramping up AI-related spending. Goldman Sachs analysts have projected that big tech companies, including Amazon and Microsoft (MSFT), are set to collectively spend over $1 trillion on AI over the next five years to meet burgeoning demand.
Amazon shares were little changed in early trading Wednesday and have gained about 17% since the start of the year.