The UK government has announced the creation of an AI Growth Zone North East, in a move expected to generate more than 5,000 high-quality jobs and attract up to £30 billion in private investment. The designation positions the region as one of Europe’s leading hubs for artificial intelligence, drawing on its existing strengths in renewable energy, advanced manufacturing, and world-class universities.
The AI Growth Zone North East will be anchored by sites in Blyth and Cobalt Park near Newcastle. The plan is not only to expand the region’s reputation as one of the largest data centre hubs in Europe but also to build on efforts already underway to upskill residents in AI. Opportunities are expected across a wide range of careers, from construction and data engineering to AI research, development, and safety. Universities in Newcastle, Durham, Sunderland, and Northumbria will play a key role in providing the pipeline of newly trained experts who will support the rapid growth of the zone.
Partnerships with leading global technology companies are central to the project. Blackstone has already committed £10 billion to the Blyth site, and with the designation of the AI Growth Zone North East, an additional £20 billion could flow from other investors. British firm Nscale, in partnership with OpenAI and NVIDIA, will establish Stargate UK to deliver new AI infrastructure. The project will initially deploy up to 8,000 GPUs, the computer chips that form the building blocks of AI, with capacity to expand to around 31,000 in the coming years. This new infrastructure will accelerate AI adoption across the UK and support breakthroughs in areas such as drug discovery, clean energy, and financial services.
Technology Secretary Liz Kendall welcomed the announcement, saying: “This is great news for the North East and the people who live there. This investment will create thousands of high-quality jobs, boost skills and inspire the creation of new firms. The North East’s industrial legacy is evolving into a future of innovation – unlocking a potential £30 billion and powering communities with the skills and careers to lead the UK’s next industrial revolution.”
North East Mayor Kim McGuinness added: “Today’s announcement of an AI Growth Zone places the North East at the forefront of the next technology revolution and will lead to billions of pounds of new investment in our region, thousands of better jobs and new opportunities for local people. I want kids in school here today to see their place in an AI-driven future. We know AI will be transformative for our economy, but this is how we make sure it also provides a new future for our young people, by working with business to create training and apprenticeship routes into this fast growing sector on a whole new scale.”
The academic community is equally optimistic about the AI Growth Zone North East. Professor Chris Day, Vice-Chancellor and President of Newcastle University, said: “We are excited to play a key role in the AI Growth Zone and to continue driving economic prosperity in the North East. This investment will enable us to expand training in AI, data science, cloud infrastructure and data-centre engineering. It will be vital in upskilling the local workforce that will benefit from new jobs in this key growth sector. It will also enable us to provide cutting-edge AI and data research to support companies locating in the zone, building on our world-leading expertise. This announcement cements Newcastle University’s role in developing an exciting innovation ecosystem in the North East that will benefit the region and the country more widely.”
The corporate partners driving investment also underlined the significance of the project. Jensen Huang, founder and CEO of NVIDIA, described the announcement as a milestone, saying: “Today marks a historic chapter in U.S. – United Kingdom technology collaboration. We are at the Big Bang of the AI era – and the United Kingdom stands in a Goldilocks position, where world-class talent, research and industry converge. By building state-of-the-art AI infrastructure and investing in British startups, we are unlocking the power of AI for the U.K. – fuelling breakthroughs, creating jobs, and igniting the next industrial revolution.”
Josh Payne, CEO of Nscale, reinforced the ambition: “We’re delighted to announce Nscale’s commitment to UK AI infrastructure today, including through Stargate UK and building the most powerful supercomputer in the country with Microsoft. As a UK-based company, we’re showing how we can be makers, not takers, of the most important technology of our time.”
Sam Altman, CEO of OpenAI, emphasised the UK’s position in AI development: “The UK has been a longstanding pioneer of AI, and is now home to world-class researchers, millions of ChatGPT users, and a government that quickly recognized the potential of this technology. Stargate UK builds on this foundation to help accelerate scientific breakthroughs, improve productivity, and drive economic growth. This partnership reflects our shared vision that with the right infrastructure in place, AI can expand opportunity for people and businesses across the UK.”
James Seppala, Chairman of Blackstone Europe, highlighted the long-term vision, stating: “We are delighted that the government has designated our hyperscale data centre campus in Northumberland as an AI Growth Zone. This should help accelerate the development of one of Europe’s largest data centre facilities, with £10 billion of projected investment by Blackstone funds. We hope that the project will represent a transformational investment for the region, with the potential to deliver substantial benefits to the country and local communities, by driving innovation, creating high-skilled jobs, and solidifying the UK’s position as a global AI leader.”
The AI Growth Zone North East will not only drive technological progress but will also align with the government’s focus on clean energy. With access to abundant renewable power from wind farms, upcoming solar projects, and increased battery storage, the region will be well placed to host data centres that operate sustainably while delivering cutting-edge innovation. Universities, businesses, and community organisations are already working together to create pathways into AI careers, ensuring that the benefits of this investment are shared widely.
As part of the wider partnership between the UK and the United States on emerging technologies, the AI Growth Zone North East represents both an economic and social transformation. With thousands of jobs, billions in investment, and global companies committed to building infrastructure in the region, it is set to become a cornerstone of the UK’s plan for change and a clear signal that the North East will play a central role in the future of artificial intelligence.
