AI Growth Zones: Government Launches Expression of Interest
The Government has fired the starting gun on the AI Growth Zones (AIGZ) process, issuing an expression of interest targeting regional and local authorities and industry, including data centre developers and energy firms.
In January, the Government announced it had chosen Culham as the site for the first AI Growth Zone, the headquarters of the UK Atomic Energy Authority (UKAEA). The expression of interest outlined today provides some further insight into the Government’s thinking behind one of the flagship recommendations it agreed to take forward in the AI Opportunities Action Plan.
While the expression of interest (EOI) is separate from the formal AIGZ selection process (which will open as planned in spring 2025) it will help to guide site selection and policy development, ensuring that rapid progress is made to secure investment and growth. The EOI will run until the 28th February 2025. Responses can be submitted to [email protected].
What has been announced so far?
The EOI is targeted towards hearing from two main groups:
- Local and regional authorities are being asked to identify;
- Sites with large existing power connections (100MW+) or a clear path to securing them,
- deindustrialised areas with land and infrastructure suitable for redevelopment
- Sites close to land that would be suitable for hosting low carbon power generation and storage,
- Regions with an existing tech or industrial base.
- Industry (data centres and energy firms) are being asked to identify;
- Ambitious strategic proposals to deliver a 500MW+ AI infrastructure cluster by 2030, but welcoming larger projects.
- This includes setting out a roadmap to achieving the desired energy capacity along with clear timelines,
- What support would be needed from Government to deliver,
- And identify partnership opportunities with local authorities and outline how the AI Growth Zone would support the UK’s wider AI ecosystem.
What are the benefits to being in an AI Growth Zone?
AI Growth Zones are intended to be dedicated focus areas to kickstart investment into AI and the supporting infrastructure and ecosystems.
Being in one of these zones will mean access to faster planning permission to “rapidly build AI infrastructure including data centres and give them the energy connections needed to power AI innovations”, and that the Government will work with energy network operators to “rapidly scale” each zone to a minimum of 500MW+.
The Government’s intention is to use these targeted interventions into the planning and energy processes – frequently cited by business as key frustrations and as barriers to growth and investment – to crowd in significant amounts of private investment, creating new jobs and revitalising regions.
The Government also reiterated its intention to focus in particular on deindustrialised regions of the UK, and has asked for suggested sites to identify such areas with “land and infrastructure suitable for redevelopment”.
We should note however that it has also called for proposals from regions with existing tech or industrial clusters, suggesting that Government is looking to get maximum impacts for its investment, at least for this particular round of interest.
The Government has been keen to stress the positives of potential investment into AI as part of its AI Opportunities Action Plan, published in January, and will likely continue to use AI Growth Zones as part of this positive narrative.
What remains to be seen?
As mentioned above, the Government has made it clear that this EOI is not part of the formal AIGZ selection process. By Spring 2025, the Government will set out a process to identify and select further AIGZs. This process will take into account how AIGZs can support regional growth opportunities as identified in Local Growth Plans and align with the Industrial Strategy’s Digital and Technologies Sector. It will also consider energy requirements by working with the National Energy System Operator. There are several remaining unknowns to be aware of.
The expression of interest will run until the 28th February 2025. Responses can be submitted to [email protected].
If you would like to discuss this further with us, or for more information, please contact:
Edward Emerson
Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.
Usman Ikhlaq
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
