Amazon Web Services (AWS) is set to secure a £1.05 billion ($1.42bn) contract renewal with the UK Home Office for public cloud services.

In a pipeline notice published on October 30, the Home Office states the contract will run from December 1, 2027, to December 1, 2029, with a possible two-year extension. The notice describes the contract as the "renewal of AWS public cloud services to support the Home Office's current and future cloud hosting requirements."

Excluding VAT, the contract is valued at £881.6 million ($1.189bn)

According to analysis from BidSkim, the Home Office has spent £444.6 million ($599.66m) on AWS since 2020, meaning the new contract would be a significant step up in annual payments to the cloud provider.

This year, £51.5m ($69.46m) was spent between January and July, with BidSkim estimating a full-year spend of £88.3m ($119.1m). From December 2027, this could increase to £220m ($296.73m) annually, provided the contract spans the full four-year period. Should the spending cover just two years, this would total £441m ($594.8m) annually.

Separate analysis from BidSkim looking at public spending across all four major cloud providers found that AWS has secured 75 percent of the money spent from 36 percent of all contracts.

The total value of contracts awarded between January 2022 and October 2026 saw £1.22bn ($1.65bn) spent on AWS, £355m ($478.8m) spent with Microsoft Azure, £47m ($63.4m) with Google Cloud, and £15m ($20.23m) with Oracle. The contracts come from the public sector markets for cloud hosting, cloud migration, managed hosting, and Microsoft licensing.

The Home Office's hosting contract and HM Revenue & Customs' compute commitment, both three-year deals awarded to AWS in 2023, made up 49 percent of all spending and combined were valued at £800m ($1.08bn). The next largest contract also went to AWS and was a £94m ($126.78m) agreement awarded by the Department for Work and Pensions.

The Home Office is seeking market engagement regarding the latest planned AWS commitment, with an event being hosted on December 8, 2026. The official tender notice is expected to be published on January 4, 2027.