It was a cause for celebration when the UK Government announced that its new AI Opportunities Action Plan would not only increase public compute capacity ‘twentyfold’ but also increase the country’s processing power and expand its high-performance compute (HPC) infrastructure. Indeed, the report rubber-stamps everything from the establishment of ‘AI Growth Zones’ to speed up the build-out of AI data centres to helping universities increase the numbers of AI graduates.
This is a fantastic opportunity to capture the enthusiasm for and shore up our expertise in technology throughout the UK. The north in particular has a rich potential for growth in AI and HPC, with the skills and infrastructure ready to scale. New AI Growth Zones could unlock this potential, spreading innovation and economic growth across the whole country.
The UK’s strengths in AI
The two fastest supercomputers in the UK are Dawn and Isambard-AI. The first is a collaboration between the University of Cambridge, the UK Atomic Energy Authority, UK Research & Innovation, and private sector giants Intel and Dell. The second is an impressive cluster hosted by the University of Bristol and funded by a £225m investment from the government.
These two infrastructure projects are critical for the UK. And there’s no shortage of talented researchers and institutes, either. Edinburgh, for example, was one of three universities cited by the new Action Plan as ‘pockets of deep academic expertise’ in AI compute. It’s been one of Europe’s largest centres for AI research since the 1960s and remains a hub for ground-breaking work in both fundamental and applied AI.
The first confirmed AI Growth Zone will be Culham Science Centre in Oxfordshire. That’s a step in the right direction, but it would be even better if the government would see fit to establish the remaining zones outside southern England. In the north, these types of programmes would have a transformative impact on the regional economy, supercharging a burgeoning ecosystem for tech startups and data centres. Consider, for instance, the £350m server farm Kao Data is building in Stockport, Greater Manchester, or the plans Durham University has submitted for a new supercomputer at Aykley Heads. Businesses across the region are eager to trial the latest breakthroughs in GPU architecture — something we’re supporting through initiatives like our AI lab in Stockport.
The north also has a strong skills base, industry-leading expertise, and the drive to succeed. For its part, Leeds City Region boasts the largest degree-level workforce in northern England, with 35% of applicants boasting a BA. Over 12,000 students, meanwhile, are studying subjects related to data science, machine learning, AI, immersive technologies, or computing science. Meanwhile, every year, industry events such as Computing Insight UK (CIUK) or the AI Tech North Summit draw thousands of attendees to explore the latest breakthroughs in AI and HPC and how to use these for commercial success.
Even though London has a higher business density than areas like the northeast (1,370 per 10,000 adults, vs. 751), the north is witnessing a surge in entrepreneurial success. Between 2022 and 2023 alone, the northeast and Yorkshire increased average business turnover by 12.9% and 10.5%, respectively, compared to England as a whole (5.3%). AI Growth Zones set up in northern regions could take advantage of local talent and enthusiasm to supercharge this growth.
Supporting businesses of all sizes
Large firms will play a key role in this Action Plan – as they should. But let’s not overlook the importance of SMEs, scale-ups, and academic spinouts innovating at the cutting edge, many of which are located in the north.
HSBC and Dealroom found that UK universities create more spinout value than anywhere else in Europe, landing more than £7.3bn of venture capital investment in the first six months of 2024. So much of this innovation happens in the north, whether that’s startups like the University of Leeds’ Slingshot Simulations, specialising in digital twin technology, or Newcastle University’s Mignon, working on novel edge and AI chip architecture.
AI Growth Zones across the north could unlock the full potential of UK innovation. The talent, infrastructure, and ambition are already here. Now, let’s focus on using those to their fullest extent.
Allan Kaye is the co-founder and managing director of Vespertec
Read more: Why the government’s AI Opportunities Plan will fail UK startups
