Google Owner Alphabet to Invest £5bn in UK Artificial Intelligence
Alphabet, the parent company of Google and the world’s fourth-largest corporation, has announced a massive £5bn ($6.8bn) investment in the UK’s artificial intelligence sector.
The funding, spread over the next two years, will be directed toward AI infrastructure and scientific research, making it one of the largest US tech investments in Britain ahead of President Donald Trump’s state visit.
Major AI Investment for the UK
Google’s president and chief investment officer, Ruth Porat, told BBC News that the UK offered “profound opportunities” in pioneering scientific research and advanced AI development.
On Tuesday, Chancellor Rachel Reeves will join Google in officially opening a new $1bn (£735m) data centre in Waltham Cross, Hertfordshire. The new site will play a central role in Alphabet’s wider investment plan, which also includes increased funding for DeepMind, Google’s London-based AI lab founded by Nobel Prize-winning scientist Sir Demis Hassabis.
Porat highlighted what she called a “US-UK special technology relationship,” noting that while risks remain, the partnership has the potential to drive economic growth, strengthen social services, and accelerate scientific breakthroughs.
She praised the UK government’s AI Opportunities Action Plan as a positive step but added that more work was needed to secure the long-term benefits of the AI boom.
A Boost for the UK Economy
Chancellor Reeves welcomed Alphabet’s announcement, calling it a “powerful vote of confidence in the UK economy” and a sign of the strong partnership between the UK and US.
The news comes as analysts report a strengthening pound, supported by expectations of interest rate changes and a surge in US investment into the UK.
Alphabet’s announcement also coincides with the company crossing a major milestone—joining Apple, Microsoft, and Nvidia as one of the few global firms valued at over $3 trillion in stock market capitalization.
AI, Energy, and Sustainability
Alphabet’s rapid growth has been credited to CEO Sundar Pichai’s strategy of making Google an “AI-first” business. While the company has faced competition from startups such as OpenAI, it remains a global leader in AI development.
However, the environmental impact of data centres has sparked international concern. Alphabet has addressed this by ensuring its new UK facility will be air-cooled instead of water-cooled, with excess heat redirected to power schools and homes.
The tech giant has also partnered with Shell to provide 95% carbon-free energy for its UK operations.
Porat stressed the importance of renewable energy but acknowledged the challenges of balancing supply and demand:
“Obviously, wind doesn’t blow and the sun doesn’t shine every hour of the day. That’s why modernising the grid is essential.”
The Future of AI Jobs
Beyond infrastructure, Alphabet says it is focused on the impact of AI on employment.
Porat acknowledged the risks of job displacement if companies rely solely on AI for efficiency. However, she emphasized that AI is already creating entirely new industries and supporting fields such as nursing, radiology, and scientific research.
“AI is here to collaborate with people, not replace them,” Porat said. “Each one of us needs to start using AI to understand how it can support our work, instead of fearing it from the sidelines.”
What Comes Next
Alphabet’s £5bn investment marks just the beginning of a wave of multi-billion-dollar US tech commitments to the UK, expected to be announced in the coming days.
With one of the world’s largest AI research hubs in London and deep ties to the US tech industry, the UK is positioning itself as a global leader in artificial intelligence—balancing innovation with responsibility, opportunity with risk.