LONDON, June 24, 2025 (BSS/AFP) - Online retail giant Amazon will invest œ40 billion ($54 billion) in the UK over the next three years, the government said Tuesday, a boost for Prime Minister Keir Starmer as he struggles to kickstart the economy.

Starmer, who met Amazon CEO Andy Jassy last week, said the announcement "adds another major win to Britain's basket and is a massive vote of confidence in the UK as the best place to do business.

"It means thousands of new jobs -- real opportunities for people in every corner of the country to build careers, learn new skills, and support their families.

"Whether it's cutting-edge AI or same-day delivery, this deal shows that our Plan for Change is working -- bringing in investment, driving growth, and putting more money in people's pockets," he added.

The œ40 billion will be used to build four distribution centres, creating an estimated 4,000 jobs, and to renovate the historic Bray Film Studios, acquired in July 2024.

In December, Amazon signed an agreement with Games Workshop, the British company that owns the rights to "Warhammer 40,000", to produce films and TV series based on the futuristic fantasy universe.

The project is set to star Henry Cavill, known for his roles in in "Superman" and "The Witcher".

The investment also includes part of the œ8 billion previously announced in September 2024 for building, operating and maintaining data centres in the UK, aimed at boosting artificial intelligence (AI) computer capacity.

The announcement coincides with the publication of the government's "Modern Industrial Strategy", which outlines how the state and high-growth industries will collaborate in the future.

- 'Right track' -
It offers a rare piece of good news for the Labour government, which has been buffeted by US tariffs and global conflicts and seen its domestic policy of tax hikes and public investment fail to deliver on its promise of growth.

Business and Trade Secretary Jonathan Reynolds will visit Amazon's headquarters in London on Tuesday to mark the announcement.

"Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, and seeing massive international firms like Amazon bank on Britain shows we are on the right track," he said.

Amazon already employs more than 75,000 people in over 100 sites across the UK.

Jassy said the company was "bringing innovation and job creation to communities throughout England, Wales, Scotland, and Northern Ireland.

"Amazon has been proud to serve our customers in the UK for the past 27 years. Thanks to their support, we've grown to be part of over 100 communities nationwide, from developing drone technology in Darlington to producing world-class entertainment at our studios in Bray," he added.

Jassy announced last February that Amazon would invest more than $100 billion this year, primarily to boost its cloud and AI capabilities.

Australia was the focus last week, when the US firm announced $13.3 billion over five years for its data centres, the largest technology investment ever made in the country.

In June, Amazon also announced major investments in North Carolina ($10 billion) and Pennsylvania ($20 billion), again for data centres and AI projects.

Amazon is currently under investigation by the UK Food Regulator, suspected of late payments to food suppliers.

If found guilty, Amazon could be fined up to one percent of its annual UK turnover.