Online retailer Amazon will invest £40 billion in the United Kingdom over the next three years, the government announced, a boost for Prime Minister Keir Starmer, who is struggling to revive the economy, AFP reported.

Starmer, who met with Amazon CEO Andy Jassy last week, said the announcement "adds another big win for the UK and is a massive vote of confidence in the country as the best place to do business.

It means thousands of new jobs — real opportunities for people in every corner of the country to build careers, gain new skills, and support their families.

“Whether it's cutting-edge artificial intelligence or same-day delivery, this deal shows that our Plan to Change is working – attracting investment, boosting growth and putting more money in people's pockets,” he added.

The £40 billion will be used to build four distribution centers that will create around 4,000 jobs and to renovate the historic Bray film studios, acquired in July 2024.

In December, Amazon signed an agreement with British company Games Workshop, which owns the rights to Warhammer 40,000, to produce films and television series based on the futuristic fantasy world.

Henry Cavill, known for his roles in Superman and The Witcher, will be part of the project.

The investment also includes part of the £8 billion announced in September 2024 for the construction, operation, and maintenance of data centers in the United Kingdom to increase computing capacity for artificial intelligence (AI).

The announcement coincides with the publication of the government's “Modern Industrial Strategy,” which outlines how the state and rapidly developing industries will collaborate in the future.

“On the right track”

This is a rare piece of good news for the Labour government, which has been hit by US tariffs and global conflicts and is seeing its domestic policy of tax increases and public investment fail to deliver on its promises of growth.

Business and Trade Secretary Jonathan Reynolds will visit Amazon's London headquarters to mark the event.

“Our modern industrial strategy will ensure that the UK is the best country for investment and business, and the fact that major international companies like Amazon are betting on the UK shows we are on the right track,” he said.

Amazon already employs over 75,000 people at more than 100 sites in the UK.

Jassy said the company “brings innovation and creates jobs in communities across England, Wales, Scotland, and Northern Ireland.”

"Amazon is proud to have served customers in the United Kingdom for 27 years.

Thanks to their support, we have grown and become part of over 100 communities across the country, from developing drone technology in Darlington to producing world-class entertainment at our studios in Bray," he added.

In February last year, Jassy announced that Amazon would invest over $100 billion this year, mainly to expand its capacity in cloud technology and artificial intelligence.

Last week, the focus was on Australia when the US company pledged $13.3 billion over the next five years for its data centers – the largest technology investment ever made in the country.

In June, Amazon also announced major investments in North Carolina ($10 billion) and Pennsylvania ($20 billion), again for data centers and artificial intelligence projects.

Amazon is currently under investigation by the British food regulator on suspicion of late payments to food suppliers.

If found guilty, Amazon could be fined up to one percent of its annual turnover in the UK. |BGNES