The UK government has launched the bidding process for ‘AI Growth Zones’, aiming to boost local economies, attract private investment and accelerate AI infrastructure development.
The initiative is part of the government’s Plan for Change and focuses on deindustrialised areas with existing energy access or potential for infrastructure expansion.
Local and regional authorities across the UK are invited to submit proposals to become dedicated hubs for AI-driven innovation.
The government is particularly interested in sites with large power connections (500MW+ capacity) or a clear plan for increasing energy capacity, as well as locations near major energy infrastructure such as nuclear reactors, solar stations, wind farms or battery storage facilities.
The AI Growth Zones will enable fast-track planning for data centres and AI infrastructure, facilitating AI adoption in areas such as healthcare.
The government aims to work with network operators to scale each zone to 500MW+, sufficient to power approximately two million homes.
Industry partners, including data centre developers and energy firms, are encouraged to participate by submitting proposals detailing development timelines, energy capacity expansion plans, and collaboration opportunities with local authorities.
The government will use these inputs to inform site selection and broader policy decisions later in the year.
Interest has already been expressed for sites in Scotland, Wales, the North East and North West, with additional locations under review.
The first AI Growth Zone will be established in Culham, Oxfordshire, home to the UK Atomic Energy Authority, serving as a testbed for integrating sustainable energy solutions, including fusion technology, to power AI infrastructure.
Peter Kyle, secretary of state for science, innovation and technology, said: “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.”
Scotland Office minister Kirsty McNeill also encouraged local authorities to explore participation: “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.”
The AI Growth Zones will be a key part of the government’s AI Opportunities Action Plan, which has reportedly attracted more than £14bn in investment since its launch.
The formal selection process is set to begin in the spring, with the first AI Growth Zones to be announced in the summer.
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