Amazon invests £8 billion in the UK to develop cloud and AI technology.

• Over the next five years, AWS intends to spend £8 billion ($10.45 billion) on establishing and managing data centers in the U.K.
• In the U.K., AWS competes with Microsoft and Google, while its investment further strengthens its focus on expanding in Europe.

AWS, the cloud division of the U.S. e-commerce giant, plans to invest £8 billion ($10.45 billion) over the next five years to establish data centers in the U.K. and intensify its cloud computing efforts in the country.

The investment in generative AI, announced early Wednesday London time, reflects the growing interest in this technology and the potential benefits it can bring to businesses.

British businesses have embraced cloud computing and AI technology, and the U.K. has a bold digital plan, according to Tanuja Randery, managing director for European, Middle East and Africa at AWS, in an interview with CNBC.

"To enable our customers to fully utilize cloud computing, we must have data centers that can deliver it."

Generative AI is considered by Randery to be "probably the most transformative technology we have seen, possibly since the cloud and the internet," and businesses are currently testing the emerging technology.

"Businesses are considering revenue growth, employee productivity, a critical aspect, and global competitiveness when evaluating this issue."

Cloud companies, including AWS, have been heavily investing in infrastructure like data centers and chips to train and run AI models, which they then offer as services to businesses.

AWS competes with Microsoft and Google in the U.K. and its investment in Europe continues to expand. AWS announced this year that it plans to invest 8.8 billion euros in its existing cloud infrastructure in Germany.

The Competitions and Markets Authority is currently scrutinizing competition in the U.K. cloud market, with AWS and Microsoft under the microscope.

Randery stated that AWS is collaborating positively with the CMA, but it is crucial for authorities to strike a balance between regulation and innovation.

Randery stated to CNBC that we collaborated closely with governments and regulators worldwide, emphasizing the importance of regulation while maintaining an innovative approach.