The government’s decision to designate a new AI Growth Zone in North Wales has come under criticism as it fails to address the key barrier of energy costs.
The Department for Science, Innovation and Technology announced on Thursday that North Wales would become the next AI Growth Zone – a designation stemming from the department’s AI Opportunities Action Plan.
AI Growth Zones are areas that will receive targeted support and a streamlined planning and regulatory regime to allow for the rapid development of infrastructure essential to the growth of the AI sector.
Growth zones in Oxfordshire and the North East have previously been announced.
The most recent zone announced, however, has spurred criticism from the trade body techUK, which has said the government’s growth zone designations fail to account for the enormous cost of energy.
“TechUK is fully supportive of the government’s AI ambitions but today’s announcement doesn’t go far enough to address the industry’s concerns,” said chief executive Julian David.
“The UK has the highest industrial energy prices in Europe, a lengthy wait for access to the UK power grid, and planning system delays. These issues are major blockers to significant digital infrastructure investment and risk holding the UK back.
“We must find solutions to these systemic issues that balance attracting investment for our AI infrastructure and lowering costs for the sector at large.”
The government on Thursday announced North Wales would also be the site of the UK’s first small modular reactor (SMR), a type of power plant that can act as a source of nuclear energy without the costs and timeframes associated with a full-scale power station.
Most estimates suggest construction of SMRs takes up to three years, not including the planning approval process.
