AI Boosts UK Healthcare with £5bn Investment

Google has opened a data centre in Hertfordshire to meet growing demand for AI services, as part of a two-year £5bn investment in the UK.

The centre in Waltham Cross, opened by chancellor Rachel Reeves, encompasses Google DeepMind with its AI research in science and healthcare, and will help the UK develop its AI economy by advancing AI breakthroughs and supporting around 8,250 jobs.

It is part of a £5bn investment including capital expenditure, research and development, and related engineering.

Reeves said: “Google’s £5bn 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.”

Google is investing to support people across the UK to gain the skills for AI adoption and is part of an industry group, announced by the government in July 2025, to train 7.5 million people by 2030.

Demis Hassabis, co-founder and chief executive of Google DeepMind, 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 will establish a community fund, managed by Broxbourne Council, to support local economic development.

Ruth Porat, president and chief investment officer at Alphabet and Google, said: “With today’s announcement, Google is deepening our roots in the UK and helping support Great Britain’s potential with AI to add £40bn to the economy by 2030 while also enhancing critical social services.

“Google’s investment in technical infrastructure, expanded energy capacity and job-ready AI skills will help ensure everyone in Broxbourne and across the whole of the UK stays at the cutting-edge of global tech opportunities.”

The news follows announcements from pharmaceutical giants Merck and AstraZeneca that they are pulling out of the UK.

Merck, known as MSD in Europe, halted plans to build a £1bn research centre under construction in London and is cutting more than 100 scientific staff, citing concerns about the UK’s commercial environment.

Meanwhile, AstraZeneca has paused a planned £200 million investment in its Cambridge research site, which was expected to create thousands of jobs.

This is a blow for the government, which is seeking to boost economic growth and attract investment to life sciences, with Wes Streeting, health secretary, pledging to make Britain a “powerhouse” for the sector.

The government’s Life Sciences Sector Plan, published in July 2025, sets an ambition to harness scientific innovation for economic growth, which includes making the UK “an outstanding place to start, scale and invest”.