Google makes £5bn pledge to Britain - but concerns raised over mooted UK-US tech deal

Google is set to invest £5bn in the UK in the next two years, to support growing demands for AI services.

The announcement, which comes as Google opens a new data centre in Waltham Cross in Hertfordshire, is expected to contribute to the creation of thousands of jobs, the US tech giant said.

Chancellor Rachel Reeves described it as a "vote of confidence" in the UK economy.

The news comes hours before Donald Trump lands in the UK for a state visit at which he and Sir Keir Starmer are widely expected to sign a new UK-US tech deal.

It also follows reports that ChatGPT parent firm OpenAI, and Nvidia, will also unveil billions of dollars' worth of investment into UK data centres this week.

The chancellor said the investment would boost research and development, capital expenditure and engineering.

However, Liberal Democrat leader Sir Ed Davey has criticised the proposed deal as a "Silicon Valley stitch-up", and has demanded that the government put it to a vote in parliament.

He said: "I am really concerned the government is going to agree to a Silicon Valley stitch-up that hands tax cuts to tech billionaires while undermining protections for our children online."

Sir Ed added: "Parents want protections for children online to be kept in place, not traded away in a backroom deal with tech barons.

"We can't let the government sign up to a deal that benefits Elon Musk at the expense of the British people."

Read more:
What Elon Musk told crowds in London via video link

Google has confirmed it will invest £5bn into capital expenditure, research and development, and related engineering over the next two years, which will include "pioneering" AI research in science and healthcare through its DeepMind operation.

The Silicon Valley firm said the investment will help the UK grow its AI economy and contribute to technological breakthroughs, improvements in cybersecurity and job creation.

Google predicted the investment will help to create 8,250 jobs annually at UK businesses.

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 UK has a rich history of being at the forefront of technology - from Lovelace to Babbage to Turing - so it's fitting that we're continuing that legacy by investing in the next wave of innovation and scientific discovery in the UK."

(c) Sky News 2025: Google makes £5bn pledge to Britain - but concerns raised over mooted UK-US tech deal