In a significant move to revitalise local communities, the UK government has announced the opening of bidding for its AI Growth Zones, a key component of the government's Plan for Change.
This initiative is set to create thousands of new jobs and attract millions in private investment, particularly in deindustrialised areas across the country.
Local and regional authorities are being encouraged to nominate their communities to become dedicated hubs for AI infrastructure development. The government is focusing on areas with existing access to power or those suitable for establishing major energy infrastructure. This initiative follows the AI Opportunities Action Plan, which has already attracted over £14 billion in investment since its launch last month.
The government is calling on industry players, including energy companies and data centre developers, to support the rollout of AI Growth Zones. Their proposals will inform the final selection of sites and broader policy decisions, enabling swift investment and growth across the UK. Promising sites in Scotland, Wales, the North East, and North West are already under consideration, with further exploratory work set to begin in additional locations.
Peter Kyle, Secretary of State for Science, Innovation and Technology, commented:
“We set out our new blueprint for AI less than a month ago, and we’re already delivering on that vision by harnessing technology to supercharge our Plan for Change.
“These new AI Growth Zones will deliver untold opportunities – sparking new jobs, fresh investment and ensuring every corner of the country has a real stake in our AI-powered future.
“We’re leaving no stone unturned in how we can harness expertise from all over the UK to deliver new opportunities, fresh growth, better public services and cement our position as an AI pioneer, and that’s the message I will be sending to international partners and AI companies at the AI Action Summit.”
AI Growth Zones will expedite planning permissions to rapidly build AI infrastructure, including data centres, and provide the necessary energy connections to power AI innovations in sectors like healthcare. The government aims to work with network operators to scale each zone to 500MW+, enough to power approximately two million homes. This will attract significant private investment, create local jobs, and strengthen the UK's global AI leadership.
Communities looking to host AI Growth Zones should meet the following criteria:
- Sites with large existing power connections (500+ MW capacity) or a clear vision for increasing energy capacity.
- Deindustrialised areas with land and infrastructure ready for redevelopment.
- Locations near major energy infrastructure such as nuclear reactors, solar stations, wind farms, or battery storage.
Data centre developers and energy firms are invited to submit proposals detailing timelines, development milestones, partnership opportunities with local authorities, and plans to support the UK's AI ambitions. The government is committed to providing the necessary support to drive these proposals forward.
Tees Valley Mayor Ben Houchen also said:
“It was great to be invited to visit 10 Downing Street last week to talk about the massive potential AI has to bring a huge leap forward in industries across our nation.
“Teesside, Darlington and Hartlepool has always been at the forefront of cutting-edge technology – from the friction match to the railways and the chemical industry.
“My job above everything is to bring good, well-paid, long-term jobs to local people. We have everything we need to host an AI Growth Zone in our region. We have the land, we have the power and we have shown in our efforts at Teesworks how we can get huge projects moving forward at pace.”
The government has confirmed that the first AI Growth Zone will be based in Culham, Oxfordshire, home to the UK's Atomic Energy Authority. This site will serve as a testing ground for sustainable energy research, including fusion technology, to power the UK's AI ambitions. The creation of a new AI Energy Council, chaired by the Science and Energy Secretaries, will ensure responsible energy sources are used to drive the UK's AI blueprint.
The AI Opportunities Action Plan is central to the government's Industrial Strategy and the upcoming Digital and Technology Sector Plan. Following the expression of interest, the formal selection process for AI Growth Zones will open in the spring, with the first zones to be announced in the summer.
This ambitious initiative promises to deliver significant economic benefits, create local jobs, and position the UK as a global leader in AI innovation.
Image credit: iStock
