Google will invest £5 billion ($6.8 billion) in the UK over the next two years, the tech giant announced on Tuesday ahead of President Donald Trump's state visit to the country, during which he and Sir Keir Starmer are widely expected to sign a new UK-US tech deal.

The announcement follows reports that other major tech firms, including ChatGPT parent company OpenAI and Nvidia, will also unveil billions of dollars' worth of investment into UK data centres this week.

The £5 billion investment encompasses Google's capital expenditure, research and development, and related engineering activities over the next two years. It includes what Google describes as "pioneering" AI research in science and healthcare through its DeepMind operation.

The tech giant said the investment will help the UK develop its AI-based economy, unlock innovations in this field across the country, and strengthen cybersecurity capabilities. Google added that the investment is expected to boost career opportunities and create 8,250 jobs annually in UK companies.

As part of this commitment, Google announced the opening of its data centre in Waltham Cross, Hertfordshire.

Inaugurated on Tuesday by Chancellor Rachel Reeves, the data centre will help meet the growing demand for Google's AI-based services, including Google Cloud, Workspace, Search, and Maps.

The US technology company said that more than 250 companies worked on the construction of the facility, most of them local firms.

Reeves emphasised in a statement that Google's £5 billion investment represents a "strong vote of confidence in the UK economy" and demonstrates the strength of the UK's partnership with the US.

"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 technology to unlock better jobs and opportunities," she added.

Ruth Porat, chair and chief investment officer of Alphabet and Google, said the investment will enable Google to "strengthen its roots in the UK" and help support the country's potential with AI, aiming to add £400 billion to the economy by 2030 whilst improving essential social services.

Demis Hassabis, co-founder and chief executive of Google DeepMind, added: "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."

However, the broader context of UK-US tech relations has drawn criticism from some quarters. Liberal Democrat leader Sir Ed Davey has criticised the proposed UK-US tech deal as a "Silicon Valley stitch-up", demanding that the government put it to a vote in Parliament.

"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 said. "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."

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