North East to 'ignite new industrial revolution' with £30 billion AI Growth Zone

The North East is set for a £30 billion technology jobs boom, the Government has announced.

Plans have been unveiled for an AI Growth Zone in the region.

Promising more than 5000 jobs and based across sites in Newcastle and Blyth, Northumberland, officials say it will “ignite the next industrial revolution… and solidify the region’s ambition to become one of the largest data centre hubs in Europe”.

They add the venture will see UK-based Nscale partner with US operators OpenAI and NVIDIA to create Stargate UK, which will develop a platform to boost British AI adoption.

According to the plans, Nscale will make “thousands” of computer chips at Newcastle’s Cobalt Park business hub, which will be used by OpenAI.

Bosses say the AI Growth Zone will be further boosted by Blackstone QTS’ previously-announced £10 billion data centre in Cambois, near Blyth, which the firm says could create and support thousands of jobs.

Ministers add the AI Growth Zone will increase productivity across sectors including manufacturing, healthcare and energy, and deliver fresh breakthroughs in drug discovery, climate change and safer technology “by giving researchers, scientists, start-ups and academics access to AI power”.

Hailing the announcement, Kim McGuinness, North East mayor, said it will create a new industrial legacy in the region.

She said: “This places the North East at the forefront of the next technology revolution and will lead to billions of pounds of new investment, thousands of better jobs and new opportunities for local people.

“I want kids in school to see their place in an AI-driven future.

“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 from around the world.”

Jensen Huang, NVIDIA founder and chief executive, said: “This marks a historic chapter in US/UK technology collaboration. 

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

“We are unlocking the power of AI for the UK – fuelling breakthroughs, creating jobs and igniting the next industrial revolution.”

Josh Payne, Nscale chief executive, added: “We’re showing how we can be makers, not takers, of the most important technology of our time.”

The announcement comes just days after another transatlantic partnership between Centrica and X-Energy unveiled proposals to create a 2500-job nuclear power scheme in Hartlepool.

John McCabe, North East Chamber of Commerce chief executive, said: “These developments highlight the North East’s growing role in the high-technology and clean energy sectors, creating thousands of jobs, driving research and development, and attracting global investment – all while strengthening UK/US collaboration.”

Liz Kendall, technology secretary, added: “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.”

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