Government fires starting gun on AI Growth Zones to turbocharge Plan for Change
Source: gov.uk (2025-02-10)

Thousands of new jobs are set to be created as bidding opens for AI Growth Zones.

- UK government ramps up its Plan for Change as new AI Growth Zone bidding opens
- Development hotbeds for AI set to revitalise local communities, attract fresh investment and deliver new opportunities
- Interest is already building for high-potential sites in Scotland, Wales, the North East and North West - with others now poised to come forward
Thousands of new jobs are set to be created as the government opens bidding for its AI Growth Zones in a major drive to revitalise local communities as part of the government’s Plan for Change (https://www.gov.uk/missions).

Local and regional authorities across the UK are being encouraged to put their communities forward to become dedicated hotbeds for AI infrastructure development and attracting millions in private investment.

The UK government will put particular focus on deindustrialised areas of the country to become the next AI Growth Zones as local and regional authorities submit their proposals, including sites with existing access to power or which would be suitable to establish major energy infrastructure.

This closely follows the AI Opportunities Action Plan (https://www.gov.uk/government/publications/ai-opportunities-action-plan), which has put the UK on course to revolutionise public services and become an AI superpower - already attracting over £14 billion in investment since launching just last month.

Secretary of State for Science, Innovation, and Technology, Peter Kyle, said:

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.

As part of the talks, he will also bang the drum for more inward investment to deliver the AI Opportunities Action Plan, including to build the infrastructure needed across AI Growth Zones.

Industry - including energy companies and data centre developers - are also being called upon to help drive forward government plans to rollout AI Growth Zones. Their proposals will help to inform the final selection of sites and broader policy decisions later this year, meaning the government will be able to move swiftly to secure investment and drive growth in regions across the country.

Interest is already building for promising sites in Scotland, Wales, the North East, and North West, with further exploratory work now set to begin on additional locations across the UK.

Scotland Office Minister, Kirsty McNeill, said:

Scotland has always been a leader in innovation, with our rich history of pioneering advancements in fields such as engineering, medicine, and technology, which continues today.

The UK government’s Plan for Change looks to harness AI’s potential in these industries and unlock new opportunities for innovation and economic growth.

Scotland is already at the centre of these plans, with our world-leading universities at the forefront of AI development and our industrial heritage providing a range of possible sites. I would encourage our Local Authorities to explore becoming an AI Growth Zone, which will help attract further investment.

These areas will speed up planning permission to rapidly build AI infrastructure including data centres and give them the energy connections needed to power AI innovations in areas like healthcare. As part of this, the government will work with network operators to rapidly scale each zone to 500MW+, enough to power roughly two million homes.

This will attract significant private investment, create local jobs and strengthen the UK’s global AI leadership - delivering opportunities for working people across the country as part of the AI Opportunities Action Plan announced less than two weeks ago. The ideal ingredients and key criteria for communities looking to host AI Growth Zones include:
- sites with large existing power connections (with a current capacity of 500+ MW) or a clear vision on how energy capacity can be increased.
- deindustrialised areas with land and infrastructure standing ready for redevelopment.
- locations close to suitable sites for major energy infrastructure such as nuclear reactors, solar stations and wind farms, or battery storage.
This expression of interest (https://www.gov.uk/government/publications/ai-growth-zones-expression-of-interest) also extends to AI data centre companies and energy firms who are looking to tap into the potential of AI Growth Zones to deliver on the government’s AI blueprint.

Tees Valley Mayor Ben Houchen 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.

As part of these industry proposals, data centre developers and energy firms are being called on to set out: timelines and development milestones which detail how they will plan to ramp up energy capacity; partnership opportunities with local authorities and a plan for how their proposals will support the UK’s AI ambitions, as well as what additional support is needed from government to help drive forward their proposals.

Announcing its response to the AI Opportunities Action Plan, the government confirmed the first of these AI Growth Zones will be based in Culham, Oxfordshire – home of the UK’s Atomic Energy Authority. This site will also serve as a testing ground to drive forward research on how sustainable energy like fusion technology can power the UK’s AI ambitions. The creation of a new AI Energy Council chaired by the Science and Energy Secretaries will also help to ensure responsible energy sources are being used to drive forward the UK’s AI blueprint, directly supporting the government’s mission to become a clean energy superpower.

The AI Opportunities Action Plan announced last month is also at the heart of the government’s Industrial Strategy and the first plank of the upcoming Digital and Technology Sector Plan, to be published in the coming months. Following the opening of the expression of interest, the government will open the formal selection process in the spring, with the first AI Growth Zones then due to be announced in the summer.

Further information

Information on the AI Growth Zones: expression of interest (https://www.gov.uk/government/publications/ai-growth-zones-expression-of-interest).

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