Google has announced it will invest £5 billion in the UK over the next two years to meet rising demand for AI services. The funding will cover capital expenditure, research and development, and related engineering work. The announcement coincides with the opening of Google’s new data centre in Waltham Cross, Hertfordshire.

The Chancellor of the Exchequer, Rachel Reeves, described the plan as a vote of confidence in the UK economy. She said the investment will help grow the UK’s AI sector and create jobs. Google predicted the investment would create about 8,250 jobs annually at UK businesses. Reeves added: ‘Google’s £5 billion investment is a powerful vote of confidence in the UK economy and the strength of our partnership with the US, creating jobs and economic growth for years to come.’

DeepMind co-founder and chief executive Demis Hassabis said: ‘We founded DeepMind in London because we knew the UK had the potential and talent to be a global hub for pioneering AI.’ The move comes as reports suggest OpenAI and Nvidia are set to announce multi-billion-dollar UK data centre investments during President Donald Trump’s state visit.