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Data Center News > Blog > Global Market > Government opens bidding for AI Growth Zones
Global Market

Government opens bidding for AI Growth Zones

Last updated: February 12, 2025 9:19 am
Published February 12, 2025
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Government opens bidding for AI Growth Zones
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The Authorities has formally opened the bidding course of for AI Progress Zones throughout the UK, with the purpose of making hundreds of latest jobs and boosting the nation’s financial system.  

AI Progress Zones had been introduced as a part of the UK Authorities’s bid to unleash the facility of AI throughout the nation. They’re anticipated to be just like the ‘Freeports’ idea, though moderately than facilitating the simpler switch of products, AI Progress Zones could have relaxed planning guidelines and entry to sufficient energy capability to encourage the event of AI-ready knowledge centres. 

As a part of its dedication to AI Progress Zones, the UK Authorities is now asking native and regional authorities to place ahead proposals to assist it determine the place these zones must be positioned. As a part of the deal, the Authorities is promising a lift to native communities, important non-public funding, and the creation of hundreds of latest jobs – all of which may very well be engaging to areas all throughout the UK. 

Driving native regeneration with AI

There are some key requisites for areas bidding to host an AI Progress Zone, as they are going to want a minimum of 500 MW or extra of accessible energy capability. In spite of everything, the supply of energy is among the greatest components with regards to creating an AI-ready knowledge centre, and irrespective of how simple it’s to get by means of the planning course of, the dearth of energy can instantly kill any prospect of constructing a knowledge centre. 

The Authorities has already signalled that it’s hoping to revitalise deindustrialised areas by giving them AI Progress Zones. This might assist ‘degree up’ areas of the UK which are determined for the hundreds of jobs that may very well be delivered below the coverage – that features areas with excessive ranges of unemployment, such because the North East of England or Scotland, the place there’s an abundance of renewable power capability. 

Peter Kyle, Secretary of State for Science, Innovation, and Know-how, commented, “We set out our new blueprint for AI lower than a month in the past, and we’re already delivering on that imaginative and prescient by harnessing expertise to supercharge our Plan for Change.

“These new AI Progress Zones will ship untold alternatives – sparking new jobs, recent funding and guaranteeing each nook of the nation has an actual stake in our AI-powered future.

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“We’re leaving no stone unturned in how we will harness experience from all around the UK to ship new alternatives, recent development, higher public companies and cement our place as an AI pioneer, and that’s the message I shall be sending to worldwide companions and AI corporations on the AI Motion Summit.”

Encouraging nationwide participation

Authorities in Scotland, Wales, and the North of England are already making ready to place websites ahead, with a specific emphasis on areas which have current infrastructure connections, akin to nuclear reactors, photo voltaic farms, wind energy or battery storage. The Authorities can also be calling on power corporations and knowledge centre builders to submit proposals outlining how they might assist ramp up native energy capability, kind partnerships with native authorities, and assist the UK’s wider AI ambitions.

Scotland Workplace Minister, Kirsty McNeill, famous, “Scotland has at all times been a frontrunner in innovation, with our wealthy historical past of pioneering developments in fields akin to engineering, medication, and expertise, which continues immediately.

“The UK authorities’s Plan for Change seems to harness AI’s potential in these industries and unlock new alternatives for innovation and financial development.

“Scotland is already on the centre of those plans, with our world-leading universities on the forefront of AI improvement and our industrial heritage offering a spread of attainable websites. I might encourage our Native Authorities to discover changing into an AI Progress Zone, which can assist appeal to additional funding.”

Tees Valley Mayor Ben Houchen commented on the potential for his area, saying,  “It was nice to be invited to go to 10 Downing Avenue final week to speak concerning the huge potential AI has to carry an enormous leap ahead in industries throughout our nation.

“Teesside, Darlington and Hartlepool have at all times been on the forefront of cutting-edge expertise – from the friction match to the railways and the chemical business.

“My job above every part is to carry good, well-paid, long-term jobs to native folks. We now have every part we have to host an AI Progress Zone in our area. We now have the land, we’ve got the facility and we’ve got proven in our efforts at Teesworks how we will get enormous initiatives transferring ahead at tempo.”

UK Authorities urges the business to become involved

The federal government has additionally urged non-public corporations to share their very own plans for AI Progress Zones. Past serving to to pick out the websites themselves, the UK Authorities says that corporations will play a key position in shaping insurance policies to make sure the zones are absolutely outfitted to assist AI analysis and deployment.

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Spencer Lamb, CCO, Kao Information, which is at present constructing a £350m knowledge centre in Stockport, commented, “Kao Information has long-recognised the potential of Higher Manchester to develop into the UK’s subsequent AI and superior expertise hub, and with its place because the UK’s largest financial system outdoors of London, the town area was the proper place to build-out our subsequent £350m knowledge centre.

“Essentially, Higher Manchester has monumental potential to develop into an AI Progress Zone (AIGZ) – it’s house to the most important AI ecosystem within the UK by headcount; it has the most important digital sector outdoors of the southeast; and boasts a strong tech expertise pipeline from a number of world-class universities and analysis establishments.

“Additional, with a imaginative and prescient offered by the Mayor, Andy Burnham and the Higher Manchester Mixed Authority’s (GMCA) Digital Blueprint technique, there isn’t a higher location for a brand new AI Progress Zone. Not solely will we strongly assist any proposal from the GMCA, however we at Kao Information are delighted to be a part of that journey.”

Mark Yeeles, Vice President, Safe Energy Division, Schneider Electrical UK & Eire, concluded, “As the federal government ramps up its Plan for Change, its continued engagement with the digital infrastructure ecosystem is not going to solely be integral to speed up sustainable, financial development, however will play a key position in its mission to revitalise native communities by delivering much-anticipated new job alternatives, and figuring out new measures reskill the workforce.

“At Schneider Electrical we’ve long-seen the numerous potential that the Northwest of England, significantly Higher Manchester and Leeds, presents to develop AI Progress Zones (AIGZ) and to additional supercharge the AI alternative. Nevertheless, we should additionally recognise that Scotland and Wales are well-placed to catalyse development through the event of latest large-scale infrastructure and renewable power methods, each of which shall be very important.

“What’s clear is that as we transfer ahead, fixing the power, sustainability and safety challenges of synthetic intelligence stays integral to ship a greener future, powered by AI, and we look ahead to working with each the federal government and the ecosystem to exceed these ambitions.”

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When will the primary AI Progress Zone be introduced? 

We already know the place the primary AI Progress Zone goes to be positioned, because it was introduced final month. It is going to be positioned in Culham, Oxfordshire, which has been house to the UK’s Atomic Vitality Authority since 1965. 

It wasn’t precisely a shock to see Culham named as the primary AI Progress Zone, in spite of everything, it was confirmed that it would play host to AI-ready data centres back in 2024. Moreover the glut of energy capability accessible following the closure of the Joint European Torus venture, meant that the location was a no brainer for the UK Authorities’s AI ambitions. 

The Culham website will even function a testbed for future AI Progress Zones, the place it would take a look at how sustainable power, together with fusion applied sciences, can meet the facility calls for of rising AI improvements. 

As for when the following AI Progress Zones shall be introduced, nicely that may depend upon the response the Authorities receives from native authorities and companies. Whereas expressions of curiosity at the moment are open, the formal choice course of will launch within the spring, with profitable candidates being named in the summertime. 

Are AI Progress Zones sufficient to compete with different nations on AI? 

The $500 billion query shall be whether or not the UK Authorities’s dedication to AI Progress Zones shall be sufficient to compete with different nations on AI. In spite of everything, the US has announced the $500 billion Stargate Project, whereas Alphabet and Microsoft are each planning to splash the money on AI knowledge centre developments stateside. 

In the meantime, at an Synthetic Intelligence Motion Summit in Paris, President Emmanuel Macron has introduced €110 billion of personal sector funding within the AI house in France. That completely dwarfs the £14 billion of investment the UK Government has attracted since announcing its AI Action Plan final month.

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Contents
Driving native regeneration with AIEncouraging nationwide participationUK Authorities urges the business to become involvedWhen will the primary AI Progress Zone be introduced? Are AI Progress Zones sufficient to compete with different nations on AI? 
TAGGED: Bidding, government, Growth, opens, Zones
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