The UK government has launched the bidding process for AI Growth Zones as part of its AI Opportunities Action Plan. The initiative aims to strengthen the country’s AI infrastructure, attract private investment, and generate employment opportunities across various regions.
Local and regional authorities have been invited to submit proposals for the development of AI Growth Zones. The focus will be on areas with deindustrialised economies and regions with existing or potential energy infrastructure capable of supporting data-intensive technologies. The government’s objective is to integrate AI technologies into key sectors, including healthcare, while stimulating economic activity.
“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,” said the UK’s Technology Secretary, 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, and that’s the message I will be sending to international partners and AI companies at the AI Action Summit.”
According to the government, priority will be given to proposals located near energy assets such as nuclear power plants, solar farms, wind farms, and battery storage facilities. These energy hubs are expected to support the high power demands required by data centres and other AI-related infrastructure.
The AI Growth Zones initiative follows the AI Opportunities Action Plan, which has secured more than £14bn in private investment to date. The new zones are expected to expand AI infrastructure, enhance data processing capabilities, and position the UK within the competitive landscape of AI development globally.
Private sector participation is expected to play a significant role in shaping the initiative. Energy companies and data centre operators are encouraged to submit proposals outlining plans to expand energy capacity and collaborate with local governments. The government plans to review submissions and announce selected sites later this year.
Regions expressing interest include Scotland, Wales, and areas in the North East and North West of England. Additional locations are being evaluated based on their capacity to support AI development through reliable energy connections and digital infrastructure.
AI Growth Zones will benefit from streamlined planning permissions to expedite the development of data centres and energy facilities. Each zone is expected to achieve an energy capacity of at least 500 megawatts (MW), equivalent to powering approximately two million homes. This capacity is considered necessary to meet the operational demands of large-scale AI technologies.
The first AI Growth Zone will be located in Culham, Oxfordshire, which hosts the UK Atomic Energy Authority. This site will serve as a hub for AI-related projects and as a testing ground for sustainable energy technologies, including fusion energy. The government has also established an AI Energy Council to oversee the integration of sustainable energy solutions within these zones, aligning with broader energy transition goals.
The AI Opportunities Action Plan forms part of the UK’s Industrial Strategy, with an emphasis on supporting AI deployment across industries while promoting economic growth. The government is set to release a Digital and Technology Sector Plan in the coming months, providing further details on the next steps for AI Growth Zones. The selection process for the first zones will take place in spring, with site announcements anticipated by summer.
Technology Secretary calls for democratic leadership in global AI race
Meanwhile, Kyle has stated that the global development of AI should be led by “Western, liberal, democratic” nations. His comments come ahead of the global AI summit in Paris, where political leaders and tech industry executives are set to convene. Kyle’s remarks follow the rise of Chinese AI company DeepSeek, which has drawn attention from US investors and challenged assumptions about Silicon Valley’s dominance in AI.
Speaking to The Guardian, Kyle said the summit would provide an opportunity to highlight the UK’s role in AI development, showcasing the country’s “skills and scientific pedigree” as critical to maintaining leadership in the field among democratic nations.
However, the Ada Lovelace Institute criticised the summit’s initial declaration for being tepid in its ambitions to make AI safe and trustworthy. “The declaration does highlight widespread consensus on key structural risks, like market concentration, labour market impacts and sustainability challenges,” said its director, Gaia Marcus. However, “there are no tools to ensure tech companies are held accountable for harms. And there is a growing gap between public expectations of safety and government action to regulate.”
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