The Government has today launched the next phase of its AI Growth Zones programme, a flagship initiative under the Plan for Change. With over 200 expressions of interest already submitted, the process now moves into formal qualification, setting the stage for local authorities and investors to co-develop proposals that will shape the next wave of AI-enabled economic development.
Speaking at TechUK in London, Minister for AI Feryal Clark and the Prime Minister’s AI Adviser Matt Clifford outlined the government’s vision for the zones - highlighting the opportunity for regional authorities to spearhead AI-led regeneration, attract major private sector investment, and create high-value local employment.
The initiative places local and regional leaders at the centre of delivery, with expectations for streamlined planning, infrastructure acceleration, and strong public-private collaboration. Proposals must demonstrate readiness to support energy-intensive AI infrastructure, such as data centres, with access to 500MW power connections or credible plans to establish them - positioning former industrial sites as front-runners.
“Just like coal and steam powered our past, AI is powering the future,” said Clark. “AI Growth Zones are not just tech clusters - they are catalysts for local transformation.”
For digital leaders across local government, the programme offers both a challenge and an opportunity: how to align local strategies with national ambitions, ensure inclusive economic outcomes, and build long-term digital capability in their regions.
Key benefits for participating authorities include:
This week’s event marks the start of an intensive engagement period with stakeholders, including investors, digital leaders, and MPs. Bid timelines and selection criteria are being clarified, with the first additional sites set to be announced this summer. Construction is targeted to begin before the end of 2025.
Matt Clifford emphasised the urgency: “The UK has an extraordinary opportunity in AI, but speed is everything. This is a once-in-a-generation moment to act.”