AI Growth Zones: How the UK Will Turbocharge Digital Change

As part of its plans to become an AI leader, the UK government last week announced plans to invite expressions of interest (EOI) from data centre developers and energy firms.

This move was part of the UK’s AI Growth Zones plan, which is designed to unlock investment in AI-enabled data centres. The strategy not only plans to support infrastructure development by improving access to power and planning support, but also hopes to drive innovation, create high-skilled jobs and strengthen the country’s overall position in the global AI race.

The government is also encouraging local and regional authorities nationwide to put their communities forward to become hubs for AI infrastructure development. The move, the government notes in its press release, will attract private investment and put the UK on course to “revolutionise public services and become an AI superpower.”

“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,” highlights Secretary of State for Science, Innovation and Technology, Peter Kyle.

“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.”

Supporting the UK data centre industry

The news comes shortly after the government announced the UK AI Opportunities Action Plan, which the government states has already attracted more than £14 billion (US$17.64bn) in investment since launching last month.

The UK government acknowledged that it was falling behind in the global AI race and now wants to cement the country’s position as a catalyst for change.

As a result, energy companies and data centre developers are being called upon to help drive forward the AI Growth Zones rollout. 

Proposals from industry-leading companies will help to inform the final selection of sites and broader policy decisions later this year, the government says, meaning the UK will be able to secure investment and drive growth in regions across the country.

“The UK government’s recent announcement of AI Growth Zones marks a significant moment in our country’s AI advancement. By establishing dedicated areas with streamlined planning and enhanced energy access, the government is laying the groundwork for accelerated AI infrastructure development,” Ben Pritchard, CEO at AVK, explains.

“This initiative underscores the UK’s commitment to becoming a global leader in AI and promises to support local communities through job creation and structured investment.”

Staying competitive

The UK government hopes these areas will speed up planning permission to rapidly build AI infrastructure. This includes data centres, which will be offered the energy connections needed to power AI innovations in key industry areas like healthcare. 

As part of this, the government will be working with network operators to rapidly scale each zone to more than 500MW, enough to power roughly two million homes.

Ben adds: “At AVK, we recognise the critical importance of innovative energy solutions in supporting the fast-paced AI sector. Our extensive experience in delivering best-in-class power solutions positions us to actively contribute to the success of these AI Growth Zones. 

“We are eager to collaborate with developers, operators, local authorities and industry partners to continue developing power infrastructure that meets the high energy demands of AI workloads while adhering to sustainable practices."

Data centre developers and energy firms are now being called upon to set timelines and development milestones. These are meant to detail how each company plans to increase energy capacity, partnership opportunities with local authorities and a clear plan on how their proposal will support AI ambitions across the UK.

“The AI Growth Zones initiative aligns perfectly with our vision, and we are committed to playing a pivotal role in powering the UK’s AI-driven future,” says Spencer Lamb, CCO at Kao Data. “We praise the government’s proactive approach in launching the AI Growth Zones and look forward to contributing to this transformative journey.”

Prioritising regional development

Industry leaders across the UK have noted the potential of Greater Manchester in England to become an AI Growth Zone. For one thing, it is currently home to the largest AI ecosystem in the UK by headcount, has the largest digital sector outside of the South East of England and has a strong technology talent pipeline.

When announcing her plans to grow the UK economy, Rachel Reeves pledged to get the National Wealth Fund (NWF) and the Office for Investment (OfI) to work with local leaders to build pipelines of incoming investment, including trialling strategic partnerships in Greater Manchester, alongside other locations in the North of England.

Kao Data is currently building a £350m (US$440.52m) data centre in Stockport.

On this, Spencer adds: “Kao Data has long-recognised the potential of Greater Manchester to become the UK’s next AI and advanced technology hub, and with its position as the UK’s largest economy outside of London, the city region was the perfect place to build-out our next £350m data centre.

“Further, with a vision provided by the Mayor, Andy Burnham and the Greater Manchester Combined Authority’s (GMCA) Digital Blueprint strategy, there is no better location for a new AI Growth Zone. Not only do we strongly support any proposal from the GMCA, but we at Kao Data are delighted to be part of that journey.”

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