The government is calling on local and regional authorities to bid for a spot as one of the UK’s new artificial intelligence (AI) growth zones. This initiative is part of Labour’s 50-point action plan aimed at boosting AI development and simplifying planning permissions for AI projects.
At the end of January, science minister Patrick Vallance introduced the Culham AI growth zone and laid out the vision for the Oxford-Cambridge area—encompassing Oxford, Milton Keynes, and Cambridge—as a hub for tech innovation. He highlighted substantial financial backing for the region, citing investment in the East-West Rail project, the Culham zone, and emphatic support for UK research and development.
Now, the focus shifts to creating AI growth zones in deindustrialized areas across the country. Local and regional authorities are encouraged to submit proposals, particularly for sites that have existing energy infrastructure or could support major energy projects.
Peter Kyle, Secretary of State for Science, Innovation, and Technology, stated, “These new AI growth zones will create immense opportunities, generating jobs and attracting investment. We want every region to benefit from our AI-powered future.” He emphasized the need to tap into expertise from all over the UK to drive growth and improve public services, a message he plans to convey at the upcoming AI Action Summit.
The government aims to prompt energy companies and datacentre developers to build the necessary infrastructure for these AI zones. Speeding up planning permissions for datacentre construction is crucial, as these facilities require substantial energy for their AI workloads. The plan includes collaboration with network operators to ensure each zone can support over 500 MW, enough to power around two million homes.
The Department for Science, Innovation, and Technology will review proposals from energy providers and datacentre firms to guide their final site selections and broader policies expected later this year. Interest has already surged for AI growth zones in Scotland, Wales, and parts of England, particularly the northeast and northwest.
Those encouraging bids see this as a chance to draw in fresh investment and talent. Kirsty McNeill, a minister at the Scotland Office, noted that Scotland’s strong university presence in AI development and its industrial history make it a prime candidate for growth zone status. She urged local authorities to pursue this opportunity.
Tees Valley mayor Ben Houchen echoed this sentiment, expressing optimism about attracting technically skilled workers to the region. “My mission is to secure good, well-paid, long-term jobs for locals. We have the land and the power necessary for a thriving AI growth zone,” he said, recalling their success at Teesworks in rapidly advancing significant projects.
Despite the excitement, a significant challenge remains: while the UK boasts countless innovative startups, scaling these businesses commercially can be tough. A recent report highlighted frustrations from entrepreneurs, describing the UK as a “terrible place” for scaling up.