North Wales has been named as the UK’s latest AI Growth Zone, with ministers claiming the scheme will create more than 3,400 jobs in the region and contribute to up to £100 billion of additional investment nationwide.

What’s planned for the North Wales AI Growth Zone? 

This is the third AI Growth Zone to be confirmed by the UK, following a pilot site set for Culham in Oxfordshire, and another site in Blyth, North East England. Uniquely for North Wales, its AI Growth Zone will also be paired with the UK’s first small modular reactor project at Wylfa. 

While still in the early stages and very much subject to contract, this initial SMR scheme will comprise three reactors, with Great British Energy–Nuclear assessing that the site could ultimately host up to eight mini reactors, supplying power to the grid from the mid-2030s. It will also go some way towards helping reduce the burden of the AI data centres planned for the area. 

The UK Government says a total of 3,450 jobs are expected to come online in North Wales as a direct result of the new AI Growth Zone, ranging from temporary construction roles to highly skilled positions in AI research and development. When combined with the Wylfa SMR project, it puts the total number of new jobs announced for the area at nearly 6,500.

Who is behind the AI Growth Zone, and where will the funding come from?

Unlike the Blyth AI Growth Zone, which is backed by tech giants from the US, including Nvidia and OpenAI, the North Wales AI Growth Zone will be led by a consortium including Stena Line and regional partners such as Isle of Anglesey County Council and Bangor University. 

Of course those consortium partners aren’t exactly leading tech companies or even colocation providers, which means that if the UK Government hopes to develop the site, which straddles the Menai Strait, with a base at Prosperity Parc on Anglesey and another at Trawsfynydd in Gwynedd, it’ll need to secure an investment partner. 

Once that investment partner is secure, the AI Growth Zone will unlock £5 million from the UK Government, which will be channelled into regional programmes to back local research and development, and to support AI firms from start-up to scale-up.

Prime Minister, Keir Starmer, noted, “We said we’d make AI work for Britain – and now we’re putting our money where our mouth is.

“These Growth Zones aren’t an abstract conception; they’re about thousands of jobs, real investment, and change for communities that have been short-changed for too long.

“In North Wales, that means thousands of new roles and £5 million to boost skills and help local businesses adopt AI. This is delivery, not dithering – and it’s happening now.”

Liz Kendall, Secretary of State for Science, Innovation and Technology, added, “AI Growth Zones will be a game-changer for our communities and will bring thousands of new jobs and millions of pounds in investment right to the places that need it most.

“We will make sure people have the skills they need so they can fully realise the opportunities that AI presents – helping to nurture the tech leaders of tomorrow and supporting our economy with a rich pool of talent.

“AI will help us deliver the growth, prosperity and renewal as we build a future that works for all. This is an investment in our future – powered by our communities, businesses and world-class tech talent – to cement Britain’s place as a global leader in AI.”

Planning and grid reforms to speed up delivery

Alongside the new site announcement, the Government has set out reforms intended to speed up the rollout of AI Growth Zones and associated infrastructure, particularly around planning and access to electricity.

New measures are promised to cut approval times for AI Growth Zones in England from years to months, with planning guidance updated so that AI infrastructure projects are given priority. The Government says this could slash waiting times from more than four years to as little as two, backed by a dedicated AI planning team supported by £4.5 million to advise and fund local councils across the UK.

Zones across Great Britain will also be given priority access to available capacity on the electricity grid, to ensure data centres and associated facilities can connect without lengthy delays. In some cases, developers could be supported to build their own high voltage lines and substations to power their data centres, rather than waiting for network operators, with projects that reduce wider system costs eligible for dedicated pricing support.

Data centres within AI Growth Zones will be able to access significant discounts on their electricity bills if they are sited in locations that help ease pressure on the wider network. The Government argues this will both encourage investment in areas with spare capacity and support the energy system as a whole.

In the longer term, ministers want AI Growth Zones to support the creation of regional adoption hubs, funnelling money into the use and deployment of AI in public services. The intention is to embed AI in day-to-day services while building local capability, rather than concentrating activity solely in established tech clusters.

Industry reaction

Early reaction from industry has largely welcomed the focus on dedicated AI zones and the emphasis on data centre infrastructure.

Ruth Porat, President and Chief Investment Officer at Alphabet and Google, noted, “AI Growth Zones represent a positive step to ensure that everyone in the UK benefits from AI.

“Accelerating investments in data centres supports local job creation while also ensuring that the UK has access to world class AI. Google recently announced the opening of our Waltham Cross data centre, part of our ongoing investment in the UK to foster innovation and economic growth here. We welcome the government’s ambitious plans to deliver the benefits of AI responsibly.”

Rene Haas, CEO of Arm, added, “Congratulations to the Prime Minister on this important step to advance the UK’s AI ambitions. AI is reshaping how the world computes, and Arm is the compute platform powering it, delivering performance, efficiency and scalability. We are proud to play a central role in helping build the UK’s AI infrastructure.”