Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google has opened a major data center in Waltham Cross, Hertfordshire, as part of a 5 billion pounds (~$6.818 billion), two-year investment plan in the United Kingdom. The new hub is intended to power the nation’s growing demand for artificial intelligence and cloud services.
The announcement comes at a pivotal time for U.K.-U.S. technological relations, as the United Kingdom and the United States prepare to sign a major technology agreement during U.S. President Donald Trump’s state visit to the country. This new partnership will place special emphasis on collaboration in artificial intelligence, semiconductors, telecommunications, and quantum computing.
Google’s new initiative involves major investments in capital expenditure, research and development, and technical engineering. A crucial part of this effort is a partnership with Shell PLC (NYSE:SHEL) to secure 24/7 carbon-free energy.
The collaboration will use advanced battery storage to balance renewable supply with grid demand, putting Google on track for roughly 95% carbon-free operations in the U.K. by 2026. The investment will also create more than 8,000 jobs annually and strengthen Google DeepMind’s role in London.
Chancellor Rachel Reeves called the project a “vote of confidence” in Britain’s economy and said it reflects the government’s push to remove barriers to business while creating sustainable growth. She framed the development as part of broader reforms to modernize infrastructure and support workers.
Ruth Porat, president and chief investment officer of Alphabet and Google, said the expansion could add as much as 400 billion pounds to the U.K. economy by 2030. She emphasized the importance of combining infrastructure upgrades with workforce training, ensuring local communities benefit from the AI-driven economy.
Demis Hassabis, CEO of Google DeepMind, pointed to the nation’s deep history of innovation, highlighting figures such as Ada Lovelace and Alan Turing. He said DeepMind’s London roots reflect the U.K.’s potential to lead the next wave of AI discovery.
The Waltham Cross site was designed with sustainability in mind. It uses advanced cooling systems to limit water usage and redirect excess heat to nearby homes and schools, cutting costs for communities while minimizing environmental impact.
Even as investments grow, the tech sector faces heightened scrutiny. One governor recently described social media cancer, a reminder of the debates around Big Tech’s broader societal impact.
Google also announced a community development fund in Hertfordshire, to be managed by Broxbourne Council. The company pledged direct support for local charities and job programs, part of a broader effort to equip millions of Britons with digital skills by 2030.
Price Action: GOOG shares are trading higher by 0.95% to $254.16 premarket at last check Tuesday. SHEL is up 0.07%.
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