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World of Software > News > Government backs North East AI Growth Zone – UKTN
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Government backs North East AI Growth Zone – UKTN

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Last updated: 2025/09/25 at 6:13 AM
News Room Published 25 September 2025
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The government has unveiled a coalition between local universities, skills providers and AI sector specialists to plan and build a new AI Growth Zone in the North East.

New construction roles are set to be created and the new taskforce will work with local organisations to create training and apprenticeship routes to boost benefits across the region.

Newly appointed Tech Secretary Liz Kendall and North East Mayor Kim McGuinness marked the start of the taskforce by bringing together businesses to focus on getting sites in Cambois near Blyth and Cobalt Park up and running.

Blackstone has committed £10bn to the Cambois site, while Nscale, OpenAI and NVIDIA are launching Stargate UK – a sovereign AI infrastructure platform. Phase one will see up to 8,000 NVIDIA GPUs deployed early next year, with the potential to scale to 31,000 NVIDIA GPUs over time, with key sites including Cobalt Park.

The initial focuses of this task force include securing further investment, ensuring energy access and resolving planning issues.

“We’re backing local talent with the skills and training they need to thrive in the jobs of tomorrow,” Kendall said.

The North East has been positioned as a leader of the UK’s AI revolution by the government, unlocking up to £30bn in investment to transform its tech landscape, create long-term AI careers and boost public services.

North East Mayor Kim McGuinness spoke of how transformational this new AI Growth Zone will be for the region. “This investment will mean thousands of jobs for local people and the North East leading innovations in tech.

“Now we need to work with businesses to develop the talent right here, and make sure the benefits of AI reach the people of the region,” she said.

This news follows the UK-US technology deal on AI, quantum and nuclear technologies, announced by the Prime Minister and President Trump, in an effort to boost jobs and innovation.

As part of this, X-Energy and Centrica announced plans to help power the UK’s clean energy future, starting with up to 12 advanced modular reactors in Hartlepool.

The project could supply power to up to 1.5 million homes, generate £12bn in value for the North East and create around 2,500 jobs.

Read more: Industry reacts to UK-US AI infrastructure deals

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