A new AI Growth Zone planned for the North East could create over 5,000 new jobs and bring in £30bn in investment to the region, according to government projections.
AI Growth Zones are areas designated by the government as hubs for the technology that can benefit from increased investment and simplified planning regulations to expedite the construction of relevant infrastructure.
The government hopes to leverage the expertise from the local universities including Newcastle, Durham and Sunderland towards economic growth in the private sector.
“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,” Technology Secretary Liz Kendall.
“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.”
As part of the drive towards the region, investment group Blackstone has committed £10bn towards an AI-focused data centre in the town of Blyth.
Separately, OpenAI and NVIDIA plan to partner on the creation of Stargate UK, the latest in a series of massive data centres being built by OpenAI around the world.
With existing sites planned for Norway and the UAE, Stargate UK is expected to be based across several sites in Britain, including in Cobalt Park in the North East.
“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,” said North East Mayor Kim McGuinness.
“We have the skills and brainpower in our tech sector and universities, and now we can match that with the new investment this Growth Zone will bring to the North East from around the world.”
