LONDON (Reuters) -Google said on Tuesday it would make 5 billion pounds ($6.80 billion) in new investments into Britain ahead of U.S. President Donald Trump's state visit to the country, which is expected to feature a flurry of business deals and partnerships.

The U.S. tech company also announced the opening of a new data centre close to London, designed to help meet growing demand for its AI-powered services like Google Cloud, Search, Maps and Workspace.  

The investment "is a powerful vote of confidence in the UK economy and the strength of our partnership with the US," finance minister Rachel Reeves said in the company's statement. The Alphabet-owned company said the investment is projected to create 8,250 jobs annually at British businesses. 

The announcement will be seen as a boost for British Prime Minister Keir Starmer's Labour government, which is hoping to attract private investment to grow a sluggish economy and regain momentum in national opinion polls. 

The Trump visit is also expected to deepen economic ties between the two Western allies. Senior U.S. officials have said that economic deals worth over $10 billion would be announced.

In its statement, Google also said it had agreed on a deal with Shell that would contribute to grid stability and Britain's energy transition. 

Its Waltham Cross data centre, about an hour's drive from London, uses air-cooling technology to reduce water usage and is equipped to re-route heat from the centre to then be provided to local homes or businesses, thereby minimising its overall environmental impact, Google said. 

Together with its clean energy initiatives and the Shell partnership, Google said its UK operations are expected to run at or near 95% carbon-free-energy in 2026. 

($1 = 0.7351 pounds)