The North East is on the brink of a major transformation. The UK government has announced a brand-new AI Growth Zone in the region — a move expected to bring in up to £30 billion of

private investment and create more than 5,000 skilled jobs.

This landmark initiative, unveiled on 17 September, aims to position the North East as one of Europe’s biggest hubs for data centres and cutting-edge AI research. With sites at Blyth and Cobalt Park near Newcastle, the project will drive economic growth, attract global companies, and open doors for local people to build long-term careers in AI.

What the AI Growth Zone means for the North East

Jobs for thousands — from construction and data engineering to AI research, development, and safety.

Opportunities for graduates — with universities like Newcastle, Durham, Sunderland and Northumbria feeding new talent directly into a thriving AI hub.

Boost for local industries— AI adoption will help businesses in manufacturing, healthcare, energy and finance stay competitive worldwide.

Breakthroughs in science — researchers and startups will get access to world-class AI power to drive advances in drug discovery, climate change solutions and safer technologies.

The zone also makes use of the North East’s strengths: abundant renewable energy, a strong university network, and an emerging tech ecosystem in robotics, advanced manufacturing and space.

Big names, big investments

Private investment is already rolling in. Blackstone has pledged £10 billion to the Blyth site, with the new Growth Zone status opening the door to a further £20 billion from partners.

Meanwhile, Nscale, OpenAI and NVIDIA are teaming up to launch Stargate UK — a project to build next-generation AI infrastructure on British soil. The first stage will deploy up to 8,000 GPUs (the chips that power AI) early next year, with potential to grow to 31,000 GPUs across sites including Cobalt Park.

This cutting-edge infrastructure will fuel AI adoption nationwide, support startups, and strengthen the UK’s position as a global leader in the technology.

Technology Secretary Liz Kendall said:    

“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.

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”.

North East Mayor Kim McGuinness said:

“Today’s announcement of an AI Growth Zone places the North East at the forefront of the next technology revolution and will lead to billions of pounds of new investment in our region, thousands of better jobs and new opportunities for local people.

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.

Our region boasts computing power that are among the best in Europe with Cobalt Park Data Centres already established in Wallsend and the QTS Cambois Data Centre Campus in Blyth due to open in 2028. 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”.

Professor Chris Day, Vice-Chancellor and President, Newcastle University said: 

“We are excited to play a key role in the AI Growth Zone and to continue driving economic prosperity in the North East.

This investment will enable us to expand training in AI, data science, cloud infrastructure and data-centre engineering. It will be vital in upskilling the local workforce that will benefit from new jobs in this key growth sector. 

It will also enable us to provide cutting-edge AI and data research to support companies locating in the zone, building on our world-leading expertise.

This announcement cements Newcastle University’s role in developing an exciting innovation ecosystem in the North East that will benefit the region and the country more widely”.

Founder and CEO of NVIDIA Jensen Huang said:

“Today marks a historic chapter in U.S. – United Kingdom technology collaboration. 

We are at the Big Bang of the AI era - and the United Kingdom stands in a Goldilocks position, where world-class talent, research and industry converge. 

By building state-of-the-art AI infrastructure and investing in British startups, we are unlocking the power of AI for the U.K. - fuelling breakthroughs, creating jobs, and igniting the next industrial revolution”.

Nscale CEO Josh Payne said:

“We’re delighted to announce Nscale’s commitment to UK AI infrastructure today, including through Stargate UK and building the most powerful supercomputer in the country with Microsoft.

As a UK-based company, we’re showing how we can be makers, not takers, of the most important technology of our time”.

Sam Altman, CEO of OpenAI said:

‘The UK has been a longstanding pioneer of AI, and is now home to world-class researchers, millions of ChatGPT users, and a government that quickly recognized the potential of this technology. Stargate UK builds on this foundation to help accelerate scientific breakthroughs, improve productivity, and drive economic growth. This partnership reflects our shared vision that with the right infrastructure in place, AI can expand opportunity for people and businesses across the UK.

This is a key part of the government’s vision for AI Growth Zones is using more clean energy which is abundant in the North East with its existing wind farm infrastructure, plans to develop solar energy sources and greater battery storage capacity”.

A cleaner, smarter future

The Growth Zone will also harness the North East’s renewable energy, from wind farms to future solar projects, ensuring AI development is powered sustainably. Local universities are already leading research in areas like patient care, fraud detection, and mortgage approvals — showing how AI can improve daily life.

With £10 billion already secured and billions more on the way, the North East is set to become one of Europe’s biggest centres for AI — bringing lasting benefits to communities, businesses and future generations. Photo by mikemacmarketing, Wikimedia commons.