Amazon Commits £40 Billion to UK Expansion by 2028

The US tech giant announces one of its largest European investments, reshaping logistics, media, and content creation in Britain.

---

---

Introduction – A Defining Move for the UK Economy

In May 2025, Amazon revealed a sweeping plan to invest £40 billion in the UK by 2028, underscoring its long-term confidence in the British market despite global economic uncertainty. The initiative spans logistics, retail media, content production, and cloud infrastructure, making it one of the largest single-country commitments Amazon has ever made in Europe.

This expansion is not only about infrastructure but also about how Amazon envisions the UK as a hub for both e-commerce leadership and creative innovation. For everyday people, this translates into new jobs, faster deliveries, and more locally produced content.

“The UK is one of our most important global markets. This investment reflects both our confidence in the British economy and our commitment to serving customers better than ever before.” — Andy Jassy, CEO of Amazon

What Happened – Amazon’s Announcement

The company announced a multi-year investment plan that includes:

• Four new logistics centres across England and Scotland, adding millions of square feet of warehouse capacity.

• Expansion of retail media operations, tapping into the fast-growing £7 billion digital advertising market.

• Significant funding for content production and studios in the UK, building on Prime Video’s global success with UK-produced hits like The Grand Tour and Clarkson’s Farm.

• Continued investment in cloud and AI services through AWS UK facilities, powering both businesses and public sector innovation.

“This is a huge vote of confidence in Britain’s workforce and future. Amazon’s £40 billion expansion shows that the UK remains one of the best places in the world to invest, innovate, and grow.” — UK Prime Minister’s Office Statement, May 2025

Why This Matters – Strategic and Economic Relevance

Amazon’s £40 billion commitment carries major implications:

1. Jobs and Employment The new facilities are expected to create over 30,000 direct jobs by 2028, plus tens of thousands more indirectly through contractors, suppliers, and service providers.

2. Regional Development With distribution centres planned outside London, communities in the Midlands, North, and Scotland will benefit from new infrastructure and employment opportunities.

3. Retail Media Leadership By growing its retail media business in the UK, Amazon positions itself as a major competitor to Google and Meta in the digital ad space, leveraging its rich consumer data for targeted campaigns.

4. Creative Industry Boost Increased investment in content and studios strengthens Britain’s global role in film, TV, and digital production, creating opportunities for local talent, freelancers, and SMEs in the creative supply chain.

Benefits for Everyday People

For UK citizens, the expansion translates into:

• More job opportunities in logistics, tech, media, and creative fields.

• Faster delivery times thanks to enhanced logistics capacity.

• More local economic activity as suppliers, transport services, and hospitality around new centres grow.

• Greater content diversity for Prime Video users, with more shows and films produced in the UK.

• Enhanced digital services for businesses and government bodies powered by AWS.

Financial and Market Context

• Amazon’s UK revenue in 2024 exceeded £24 billion, making it one of its largest non-US markets.

• The UK retail media market is projected to reach £7 billion by 2028, with Amazon aiming to secure a significant share.

• Logistics investments aim to optimize delivery for over 15 million Prime members in the UK, reducing delivery times to as little as same-day in most regions.

• Content creation budgets are expected to surpass £1.5 billion annually by 2028, rivaling Netflix’s UK spending.

• AWS UK cloud revenues are projected to grow at 15–20% annually, driven by AI and machine learning adoption across industries.

Global Comparisons – How Amazon Invests Abroad

Amazon has pursued similar large-scale expansions elsewhere:

• Germany: €12 billion invested between 2023–2027 in logistics and AWS data centres.

• Spain: €7 billion allocated for cloud infrastructure and last-mile delivery.

• Italy: Over €4 billion for fulfilment centres and Prime Video production hubs.

The UK’s £40 billion commitment far exceeds these, confirming Britain’s unique role in Amazon’s European and global strategy.

Reactions from Industry and Analysts

“This is a welcome boost for regional economies, but Amazon must pair growth with fair wages and better conditions for workers.” — Unite the Union Statement, May 2025

“Amazon’s retail media expansion puts it in direct competition with established advertising giants. Its advantage lies in first-party shopper data, which is highly attractive to brands.” — Sarah Mitchell, Senior Analyst at eMarketer

“The UK creative industry has been seeking more global-scale investment. Amazon’s studio funding will strengthen Britain’s role as a global hub for film and television.” — John McVay, Chief Executive of Pact (Producers Alliance for Cinema and Television)

These reactions highlight the balance between opportunity and scrutiny: while unions demand better labour standards, analysts see powerful growth opportunities, and creative industry leaders welcome the influx of funding.

Recommendations for Investors – Retail, Private, and Corporate

Retail Investors (Individuals)

• Consider ETFs and mutual funds with strong exposure to e-commerce, logistics, and cloud computing.

• Track UK-listed suppliers in transport, packaging, and creative services that may directly benefit from Amazon contracts.

Private Investors (High-Net-Worth)

• Explore opportunities in regional commercial real estate near new logistics hubs.

• Invest in SMEs that could join Amazon’s ecosystem — from catering and cleaning services to tech support providers.

Corporate Investors (Businesses & Institutions)

• Partner with Amazon in logistics services, advertising solutions, and cloud innovation.

• Form joint ventures in creative production, leveraging Amazon Studios’ demand for UK-based content.

• Consider green energy collaborations, as Amazon commits to powering new facilities with 100% renewable energy.

Risks and Challenges

1. Regulatory Scrutiny Amazon’s expansion may trigger greater antitrust and data protection oversight in the UK. 

   ✅ Mitigation: Investors should monitor regulatory updates and diversify across multiple sectors.

2. Labour Relations Amazon has faced criticism over warehouse working conditions. 

   ✅ Mitigation: Track how the company invests in training, automation, and employee welfare as it scales.

3. Economic Volatility A potential slowdown in consumer spending could impact Amazon’s retail margins. 

   ✅ Mitigation: Focus on AWS and advertising divisions, which provide more resilient revenue streams.

4. Competition Intense rivalry from Tesco, Sainsbury’s, Netflix, Disney+, and digital ad giants. 

   ✅ Mitigation: Follow Amazon’s diversification strategy — its strength lies in combining logistics, cloud, ads, and content.

Looking Ahead – Amazon’s Role in the UK by 2028

By 2028, Amazon aims to:

• Operate over a dozen logistics hubs across the UK, capable of same-day nationwide delivery.

• Be a top-three player in UK digital advertising, challenging Google and Meta.

• Produce world-class UK-based content for global audiences through Prime Video.

• Employ over 100,000 people directly, making it one of the UK’s largest private-sector employers.

• Become a major energy consumer powered fully by renewables, influencing broader adoption of green infrastructure.

“This investment will not only deliver jobs and infrastructure but also enhance the UK’s position as a leader in digital innovation and the creative industries.” — UK Business and Trade Secretary, May 2025

Conclusion – A Historic Commitment

Amazon’s planned £40 billion UK investment is more than corporate expansion. It represents a reshaping of the country’s economic landscape, from how goods move to how stories are told.

For investors, this is a case study in how tech giants transform national economies. For communities, it is a promise of jobs and infrastructure. For the UK, it is proof of resilience and global relevance in a competitive world.