The bank stated that the project will contribute £9.9 billion ($13.1 billion) to the local economy over six years, including construction costs, and is expected to create 7,800 jobs.
"The UK government's priority of economic growth has been a critical factor in helping us make this decision," JPMorgan Chairman and Chief Executive Jamie Dimon said. He made the comment after expressing approval of the budget presented by UK Finance Minister Rachel Reeves on Wednesday, which did not impose additional taxes on banks.
Rachel Reeves described the decision as a "multi-billion pound vote of confidence in the UK economy".
The new headquarters will cover approximately 3 million square feet (280,000 square metres), more than twice the floor area of The Shard, currently Britain's tallest building at around 1.3 million square feet. It will also exceed the size of JPMorgan's recently completed 2.5 million-square-foot global headquarters on Park Avenue in New York.
A source familiar with the plans said the construction cost is expected to reach several billion pounds, with final designs, including the building's height, still under review.
The decision to stay in Canary Wharf represents positive news for the district, which faced challenges in retaining tenants following the COVID-19 pandemic. The area is now experiencing renewed activity as companies encourage employees to return to office-based working. JPMorgan has required its staff to be present five days a week.
The bank previously considered other locations in London after outgrowing its current 33-storey tower in Canary Wharf. Last year, options reportedly included a possible move to the City of London financial district.
The new building, located on a site known as Riverside South on the banks of the River Thames, will accommodate up to 12,000 employees. JPMorgan acquired the land in 2008 and originally intended to develop its UK headquarters there, but postponed the project after the 2008 financial crisis and instead occupied the former Lehman Brothers office in Canary Wharf.
Growth in the UK division of its retail banking arm, Chase, which offers current accounts and credit cards in competition with domestic banks such as Lloyds and Barclays, has contributed to the need for additional space.
The tower will be designed by Foster + Partners, the architectural practice led by Norman Foster, who also designed JPMorgan's New York headquarters.
The investment remains subject to a continued favourable business environment in the UK.
