On January 18, Google announced a significant investment of $1 billion to construct a data center in the vicinity of London, marking a substantial stride in the company's expansion in the UK amid escalating demands for online services. Situated on a 33-acre plot in Waltham Cross, just 15 miles north of London's heart, the data center is a project of Google, owned by Alphabet Inc (GOOGL.O).
The investment aligns with the British government's strategy to attract business investments for new infrastructure, especially in burgeoning sectors like technology and AI. The UK government hailed Google's commitment as a strong endorsement of the country's prowess in technology. Prime Minister Rishi Sunak praised the investment, recognizing the UK as a hub for technological excellence with significant growth prospects.
This investment is part of Google's continued focus on the UK, following its $1 billion acquisition of a central London office building in 2022 and another property in King's Cross, where it's developing a new office and housing its AI subsidiary, DeepMind. The announcement coincides with Microsoft's (MSFT.O) recent pledge to inject £2.5 billion ($3.2 billion) into the UK over the next three years, aiming to expand data center capacity and bolster AI services.
Alphabet CFO Ruth Porat stated that the new data center is set to cater to the burgeoning demand for AI and cloud services, providing substantial computing power to UK businesses and creating opportunities in construction and technical fields. Google, with a workforce of over 7,000 in the UK, also highlighted the potential for energy conservation through the utilization of waste heat from the data center, offering tangible benefits to the local community. The investment underscores the dynamic synergy between technological advancement and sustainable practices.
The report was brought forth by Zaheer Kachwala in Bengaluru, Sachin Ravikumar in London, and was edited by Krishna Chandra Eluri, Maju Samuel, and Jonathan Oatis. The current exchange rate stands at $1 equaling 0.7881 pound.
