It follows reports that OpenAI, the firm behind ChatGPT, and Nvidia are also set to announce billions in UK data centre investments

Google is set to invest £5 billion in the UK over the next two years, a move aimed at meeting the surging demand for AI services and providing a significant boost to the government. The US tech giant's announcement, made as it opens a new data centre in Waltham Cross, Hertfordshire, is anticipated to create thousands of jobs.

Chancellor Rachel Reeves described the substantial investment in research, development, capital expenditure, and engineering as a "vote of confidence" in the UK economy. This follows reports that OpenAI, the firm behind ChatGPT, and Nvidia are also set to announce billions in UK data centre investments this week, amid Donald Trump's visit.

On Tuesday, Google said it will pump £5 billion 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 Google 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.

Ms Reeves will officially open the company's first UK data centre in Waltham Cross on Tuesday, amid growing demand for Google's Cloud, Workspace, Search and Maps services.

The Chancellor said: "Google's £5 billion investment is a powerful vote of confidence in the UK economy and the strength of our partnership with the US, creating jobs and economic growth for years to come.

"This Government is reversing decades of underinvestment that has held us back for too long, by slashing burdensome red tape, delivering bold reforms of the planning system and investing in better tech to unlock better jobs and opportunities."

Google 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."

Google launches £5bn AI investment in UK ahead of Trump's visit