Alphabet's Google said in a statement late Thursday that it would invest $1 billion in a new data center in the United Kingdom to meet growing demand for Google services. This is a boost for Prime Minister Rishi Sunak's Conservative government as it seeks to position Britain as a world leader in technology.
Google said construction work has begun on a 33-acre site in Waltham Cross, north London, that the company acquired in 2020. The data center "will help ensure reliable digital services for Google Cloud customers and UK Google users," the company said.
The announcement coincides with a visit to Davos by UK chancellor Jeremy Hunt, where he has been talking about the UK’s tech ambitions and highlighted the sector as a potential area of growth. In an interview at the Swiss resort, Hunt said the investment was "an important sign of confidence" in the UK.
"What I found in Davos is that people recognize that the UK has become one of the great technology hubs in the world," he said. "Companies like Google reflect that in their investments."
According to Google's website, the data center will be Google's first data center in the UK. It has other European data centers in the Netherlands, Denmark, Finland, Belgium and Ireland, where its European headquarters is also located. The company said it employs more than 7,000 people in the UK.
Hunt told a separate news conference in Davos that he also wanted to encourage more companies to list on the London Stock Exchange and free up capital to invest in British companies.
The chancellor is due to meet with UK banks next week to discuss the value of their shares. Barclays shares have fallen by more than a fifth in the past 12 months, Lloyds Bank has fallen 14% and NatWest Group Plc has fallen about 30%.
Mr Hunt said one of the focus of his discussions with bank bosses would be how to encourage the UK pension fund industry to invest more in domestic equities.