The UK’s HM Revenue & Customs (HMRC) has awarded its data center exit contract to Amazon Web Services (AWS).

First reported by ComputerWeekly and The Register, HMRC confirmed that AWS won the almost £500 million ($649.5m) contract in an award notice published on March 23.

The contract will run from April 2026, to April 2033, with a possible extension to April 2036. Its total value is £472.8m ($631.83m), including VAT.

Under the agreement, AWS will assist HMRC with exiting its three managed data centers and decommissioning “any remaining infrastructure.”

In addition, optional services can be provided to HMRC, including business services transformation, designing and implementing new cloud services, technical debt reduction, data archiving and purging, and application modernization and optimization.

According to the notice, AWS was the sole company to submit a tender for the contract. It is the UK branch of AWS’ EMEA business that applied.

Reports that AWS was narrowing in on the contract emerged in October 2025, with the cloud giant said to be the sole remaining bidder at the time. Oracle, Google, IBM, and Microsoft were previously confirmed by HMRC to be participating in the tender process.

To date, according to the UK government’s Digital Marketplace figures, HMRC has spent some £367.25m ($483.22m) on AWS.

HMRC’s data center exit has been a long time coming. The data centers it currently uses are operated by Fujitsu. Following the scandal surrounding the Post Office’s error-ridden Horizon system (provided by Fujitsu), government departments have been keen to ditch the supplier, and Fujitsu itself said it was suspending bidding for UK government contracts.

Despite this, in June 2025, HMRC signed a £220.3 million ($301.9m) deal with Fujitsu to extend its data center contract with the provider. The department stated that the extension will only apply for a “limited time and strict terms.”

The department previously attempted to exit the data centers, contracting IBM for the project with an aimed exit of June 2022.

AWS has in recent months filed for a new London data center, and to establish a tape library facility outside of Bristol. Amazon Web Services currently has one UK cloud region located in the Bristol area (though it is named as ‘London’) that launched in 2016.

The firm is linked to several other developments across the UK, including Houghton Regis, Bedfordshire; Hayes, Middlesex; Didcot, Oxfordshire; Swindon, Wiltshire; Bracknell, Berkshire;