TL;DR: The UK Government has confirmed North Wales as the latest AI Growth Zone location, announcing planning and energy reforms designed to slash approval times from over four years to as little as two whilst unlocking up to £100 billion in additional investment and creating thousands of jobs.
Prime Minister Keir Starmer and Technology Secretary Liz Kendall outlined reforms to planning, energy access, and government support mechanisms intended to accelerate AI Growth Zone development and ensure sites deliver tangible benefits for local communities.
North Wales as Technology Hub
North Wales is now confirmed to host two major infrastructure projects: the UK’s latest AI Growth Zone and the first small modular reactor project at Wylfa. The AI Growth Zone site straddles the Menai Strait, with facilities at Prosperity Parc on Anglesey and Trawsfynydd in Gwynedd.
A total of 3,450 jobs are expected to materialise in North Wales directly from the AI Growth Zone, covering temporary construction roles through to high-paid careers in AI research and development. Combined with the small modular reactor project, the total reaches nearly 6,500 new jobs for the area.
£5 million in support will be allocated to each AI Growth Zone at local level for business adoption and skills development, funnelled into regions to accelerate economic growth, boost research and development efforts, and support regional AI firms from start-up to scale-up.
Planning and Energy Reforms
Planning guidance has been updated to give AI infrastructure projects priority, reducing waiting times from over four years to as little as two. A dedicated £4.5 million AI planning team will support local councils across the UK with expert advice and funding, streamlining the approvals process.
AI Growth Zones will receive priority access to available capacity on the energy grid. Data centres in AI Growth Zones will receive significant electricity bill discounts if located in areas that could reduce pressures on the energy network. Developers could be supported to connect their own high voltage lines and substations rather than waiting for network operators, driving down costs and accelerating progress.
The £100 billion investment figure is based on estimates that reforms could enable delivery of up to an additional 4GW of capacity, equating to £109 billion in investment potential.
Strategic Vision for AI Development
AI Growth Zones are designed as hubs for AI development, bringing together key components from processing power to research expertise. The government positions them as central to regenerating local communities and delivering opportunities across the country—from new disease treatment approaches to cleaner, greener industry.
“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,” Prime Minister Starmer stated. “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.”
Technology Secretary Liz Kendall emphasised skills development: “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.”
Work is already underway to secure an investment partner for the North Wales site, with construction expected to commence once a deal is confirmed in coming months. Three sites have been announced in the 11 months since the AI Opportunities Action Plan launch, with further announcements expected.
Source: UK Government