On the 17th September 2025, the UK government announced a new tech deal with the US as part of the US President’s State Visit – and it’s a deal that’s supposed to be worth £150 billion in funding over the next decade or so, as US tech firms look to make strides in the UK. It’s also believed the large investment from industry giants like Microsoft and Google could lead to around 7,600 new jobs in the UK. This is welcome news given recent reports of unemployment rising throughout the UK and more and more business owners having to cut down their staff numbers in order to make ends meet.
Who’s Investing?
Some big names have pledged to invest in the UK under the newly announced “Tech Prosperity Deal”. The biggest names and investors appear to be Microsoft and Google who have announced “billions” in support, but by far the biggest investor is US private equity firm Blackstone, who has pledged £90 billion of the £150 billion in support over the next 10 years. But different US firms are pledging different amounts over different timelines for different reasons.
Confused? Don’t be – we’ll lay out the facts below:
Breaking Down The £150 Billion Total Investment:
Bear in mind full details of the investment haven’t been entirely clear, but from what our experts could gather from the announcement, the following is known:
£5 billion | Over next 2 years to expand data centre in Hertfordshire | |
Microsoft | £22 billion | Over next 4 years |
Blackstone | £90 billion | Over next 10 years (in addition to a separate £10 billion already announced for data centre development) |
Prologis | £3.9 billion | For UK life sciences and advanced manufacturing projects |
Palantir | £1.5 billion | For UK defence with around 350 jobs created |
Amentum | Unknown | Aims to create more than 3,000 jobs |
Boeing | Unknown | For two new 737 aircrafts |
What It Means For The UK
From a more general perspective the investment is good news for the UK. With £150 billion of investment and around 7,600 jobs expected to be created, that can only be a good thing.
But remember, context is everything. Whilst current Business and Trade Secretary Peter Kyle might be keen to point out that:
These record-breaking investments will create thousands of high-quality jobs across the UK.
There are also very vocal critics, including former Deputy Prime Minister Sir Nick Clegg, who has told everyone to calm down about the “hype” surrounding the deal. Whilst Labour MPs might be singing the deals praises, Mr Clegg sees the deal as nothing more than “crumbs from the Silicon Valley table”.
It’s also worth noting that the ONS announced that from January to August of this year, the number of people on UK payrolls has fallen by an estimated 127,000. That means the 7,600 jobs expected to be created by this investment in the next few years is really just a drop in the ocean. Alternative means will need to be found to plug the job gap that’s forming throughout the country.
What Does The Trade Deal Mean For Your Business?
Forgetting the UK-wide impacts for a moment, what does it actually mean for you and your business? Well, if you’re in the tech space then potentially big things – both positive and negative.
From a more pessimistic standpoint, increased funding in your field usually means increased competition and in theory could lead to sales falling for your own business.
But an optimist might look at the spotlight being shone on the tech industry and see it only as a positive. Increased funding = increased interest and the more people talk about the funding going towards your industry the more likely it is that your own innovations will catch some attention of their own.
Really it’s a matter of perspective, and the real impact of the tech deal between the US and UK will only truly be felt years from now after the funding has actually been invested, rather than pledged.
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