Cloud giant to revamp NHS and government digital systems, promising better scalability, security, and citizen access
Amazon Web Services (AWS) has secured a major contract to overhaul cloud infrastructure for the National Health Service (NHS) and multiple UK government digital services, marking a significant boost to the country’s digital transformation drive. The agreement supports the government’s ongoing push to modernize aging public sector IT systems, addressing longstanding reliance on legacy infrastructure and paving the way for more efficient, citizen-focused services.
Modernizing the State: Cloud at the Core
Announced as part of the government’s Plan for Change agenda, the deal positions AWS as a key provider of scalable cloud solutions across the public sector. The program will enhance the NHS’s digital capabilities, including:
- remote consultations
- AI-powered triage
- secure data environments
Government departments are also set to benefit from strengthened end-to-end digital services, flexible hosting systems, and managed cloud support.
This initiative builds on broader frameworks such as the £2.5 billion Digital Workplace Solutions 2 agreement launched in October 2025 by NHS Shared Business Services, focused on refreshing core infrastructure from data centers to networking equipment.
“Fixing digital foundations starts with refreshing and securing core infrastructure—from data centres to networking equipment,”
said David Holbrook, Senior Category Manager at NHS Shared Business Services.
Key Details of the Contract
While specific financial terms of the latest AWS contract have not been disclosed, it expands on the company’s existing role as a strategic supplier to the UK government.
- In 2024/25, AWS secured 26 contracts worth £300 million in direct public sector revenue
- The largest among them was a £65 million Cloud Platform Service agreement
- Earlier in 2025, AWS signed an £18.1 million cloud-hosting deal with the Government Digital Service (GDS), effective June 2025–September 2027
That GDS agreement delivers configurable hosting for digital services and incorporates data sovereignty options.
What the Deal Aims to Deliver
Scalability
Cloud platforms will allow rapid expansion to handle fluctuating demand, from winter health crises to peak usage of online government portals.
Security
AWS security features — including encryption and compliance with UK data protection standards — are expected to strengthen defenses against rising cyber threats.
Citizen Access
Upgraded digital platforms promise smoother access to services via apps and online portals, supporting initiatives such as the expanding NHS App, set to include virtual hospital features by 2027.
Analysis: Major Opportunity, Real Challenges
The contract represents a milestone in the UK’s digital strategy, potentially accelerating innovation in healthcare and public administration. AWS cloud infrastructure could help the NHS transition from outdated, siloed systems to interoperable platforms ready for AI-driven care models, predictive analytics, and reduced administrative burdens.
For government services, enhanced cloud capacity could mean:
- faster benefit applications
- streamlined tax services
- more resilient public-facing platforms
However, critics warn of risks.
Criticism: Tax, Dependence, and Data Sovereignty
Concerns remain over AWS’s growing dominance in UK public contracts. Since 2016, the company has won deals worth £1.7 billion across 189 contracts. Between 2017 and 2022, it secured nearly £600 million in public sector work while legally avoiding £84 million in taxes through corporate structures.
Data sovereignty also remains sensitive given AWS’s U.S. roots, although recent agreements emphasize UK-based data storage and sovereignty controls.
Another key concern is vendor lock-in. Heavy reliance on a single major provider could limit competition and future innovation. Local councils already grappling with fragmented procurement, integration complexity, and staff shortages may face implementation hurdles. As AI and IoT adoption accelerates, policymakers also warn that digital divides must be addressed to avoid widening inequality.
The Road Ahead
Overall, the AWS contract could catalyze a more modern, efficient UK public sector, but its success will depend on:
- robust governance
- transparent implementation
- ongoing independent evaluation
With the government committing £10 billion to digital transformation in the 2025 Spending Review, expectations are high that the investment will translate into tangible benefits for citizens — from faster services to improved healthcare outcomes.
“This is about building systems that are not just digital, but dependable and designed around the citizen,”
commented one senior public sector digital strategist.