Google’s £5bn UK AI investment: Waltham Cross, jobs, energy

TL;DR:

Google commits £5bn to UK over two years.
First UK data center opens at Waltham Cross.
DeepMind expansion is part of the plan.
Deal includes Shell to manage clean energy.
Government hails jobs boost and AI capacity.

On 16 September 2025, Google said it will invest £5 billion in the UK across two years, tying the announcement to the opening of its first UK data center in Waltham Cross, Hertfordshire. The company framed the spend as fuel for the country’s AI economy, including Google Cloud capacity and research at Google DeepMind.

Where and when

The Waltham Cross site opened on 16 September 2025 with UK Chancellor Rachel Reeves in attendance. A related announcement on Google’s blog sets out the two-year funding window and outlines how the spend covers capital expenditure, R&D, and engineering.

Key details

Google says the program will support a projected 8,250 UK jobs each year across the economy.
The company signed an agreement with Shell to manage a near-round-the-clock carbon-free energy portfolio for UK operations, aiming for about 95 percent carbon-free power in 2026.
The facility uses air cooling to reduce water use and is set up for heat recovery to supply local buildings.

Reeves called the investment a “vote of confidence” in the UK economy and a sign of momentum as Britain courts more AI infrastructure from global tech firms. Reuters also reported the package ahead of a US state visit, underscoring the political theater around big-ticket tech deals.

Background and context

Alphabet and rivals are racing to add compute for AI training and inference. New UK sites are meant to relieve capacity pressure for Google Cloud, Search, Maps, and Workspace. Environmental groups and local outlets have raised concerns about data center emissions and grid strain, which will keep scrutiny high as sites scale.

What changes for readers and businesses

Cloud buyers: More UK capacity should cut latency and help with data residency needs.
Talent: Hiring and contracting will ripple through construction, power, security, and AI roles.
Energy users: Expect continued debate about grid impact and carbon claims as more hyperscale sites come online.

Quick reference: the numbers

Item	Figure	Timing
Total UK investment	£5 billion	2025–2027 window stated on 16 Sep 2025
Jobs impact	8,250 supported annually (projected)	Ongoing
Carbon-free energy target	~95% in UK ops	By 2026
New facility	Waltham Cross, Hertfordshire	Opened 16 Sep 2025

Sources: Google blog; Reuters; UK tech media.

What happens next

Google will ramp capacity and connect the energy program. Watch for follow-on commitments from other US tech companies during the week’s bilateral business agenda.

Why it matters

Compute is the choke point for AI. This spend grows UK capacity, improves cloud reliability for local firms, and pressures peers to match investment. The energy plan will be a test of whether AI growth can align with climate goals.

Sources: