Bidding opens for AI Growth Zones

The UK government has called on local and regional authorities to put themselves forward to bid to host AI Growth Zones and attract local private investment into AI infrastructure.

The launch of AI Growth Zones follows the reveal in January 2025 of the government’s AI Opportunities Action Plan, and has seen £14 billion investment announced as the UK targets becoming a global superpower in AI technology.

Local authorities, particularly those in deindustrialised communities and with existing access to or potential for large scale energy infrastrucutre, to submit proposals to host AI Growth Zones. Zones will benefit from accelerated planning processes to rapidly build AI infrastructure, including data centres, and give them the energy connections needed to power AI innovations. As part of this, the government will work with network operators to rapidly scale each zone to 500MW+, enough to power roughly two million homes.

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

“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.“

Industry – including energy companies and data centre developers – are also being called upon to help drive forward government plans to rollout AI Growth Zones. Their proposals will help to inform the final selection of sites and broader policy decisions later this year, meaning the government will be able to move swiftly to secure investment and drive growth in regions across the country. 

Spencer Lamb, CCO, Kao Data, which is currently building a £350m data centre in Stockport, said: 

“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.

“Fundamentally, Greater Manchester has enormous potential to become an AI Growth Zone (AIGZ) – it is home to the largest AI ecosystem in the UK by headcount; it has the largest digital sector outside of the south east and boasts a robust tech talent pipeline from a host of world-class universities and research institutions.

“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 GMCA, but we at Kao Data are delighted to be part of that journey.”

Interest is already building for promising sites in Scotland, Wales, the North East, and North West, with further exploratory work now set to begin on additional locations across the UK. In Stockport, Kao Data is already bringing forward a £350 million data centre capable of supporting the city-region’s AI sector.