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AI growth zones

Lifecycle: Implementation Biometrics and Surveillance Camera Commissioner · Business and Trade Committee · Department for Energy Security and Net Zero · Department for Science, Innovation and Technology · Ministry of Housing, Communities and Local Government · Office for Investment · Ofgem · Planning Inspectorate · Regulatory Policy Committee · Science, Innovation and Technology Committee · Secondary Legislation Scrutiny Committee · Solicitors Regulation Authority · UK Export Finance Last regenerated 1 month, 4 weeks ago

Summary

What this is

AI Growth Zones (AIGZs) are designated UK locations — currently North East England, north Wales, south Wales and Lanarkshire — where Government is co-ordinating planning acceleration, grid access and investor engagement to host large-scale AI data centres, anchored by the Command Paper Delivering AI Growth Zones (CP 1440, November 2025) and the AI Opportunities Action Plan (January 2025).

Why it matters

The programme is the principal vehicle for delivering the compute infrastructure underpinning the Government's AI strategy and the Digital and Technologies pillar of the Modern Industrial Strategy, with headline projections of more than 15,000 jobs and up to £100 billion of private investment riding on planning and energy-system reforms now being implemented through SI 2026/13 and the Ofgem RIIO-3 settlement.

Current status

All four zones are designated and in delivery: SI 2026/13 is in force (8 January 2026) routing data-centre proposals into the NSIP regime; AIGZ taskforces in the North East and Lanarkshire are operational; and the AI Growth Lab call for evidence has closed with the SRA and the Biometrics and Surveillance Camera Commissioner submitting responses. Commercial sensitivity around individual investors (notably the OpenAI 'Stargate UK' pause) remains a live delivery risk.

What changed recently

  • 12 May 2026 — North East AI Growth Zone Taskforce reconvened to launch primary-school AI/digital-skills strand alongside business-growth workstrand. →
  • 27 Apr 2026 — DSIT confirmed (PQ 128686) that despite the Stargate UK pause it continues to work with the North East Combined Authority and commercial partners on delivery of the North East AIGZ; individual investor positions remain commercially sensitive. →
  • 27 Mar 2026 — Solicitors Regulation Authority published its response to the DSIT AI Growth Lab call for evidence, engaging on the regulatory-sandbox component of the AIGZ ecosystem. →
  • 16 Mar 2026 — Secretary of State issued a Section 35 direction under the Planning Act 2008 for Slough Holdings UK Limited's Wapseys Wood data centre campus — an early operational use of the data-centre NSIP route at a non-AIGZ site, signalling the wider applicability of SI 2026/13 mechanics. →
  • 3 Feb 2026 — Lanarkshire designated as the fourth AIGZ, with more than 3,400 projected jobs and a targeted community-support package. →

Key documents

Framework

Operationalising

Implementation

Scrutiny

Review

Consultations

Stakeholders

Grouped by role with evidence. Long groups scroll inside their column.

Sponsoring department 4

  • Department for Science, Innovation and Technology → src
    Programme owner; published CP 1440 and the Action Plan / One Year On; runs the AI Growth Lab CfE.
  • Ministry of Housing, Communities and Local Government → src
    Sponsored SI 2026/13 adding data centres to the NSIP-routable list and the wider local-planning amendments under PCPA 2004.
  • Department for Energy Security and Net Zero → src
    Owns the connections-reform consultation and the s.165A Energy Act 2023 strategic-plan regime supporting AIGZ grid demand.
  • Office for Investment → src
    Named in CP 1440 as the investor-engagement counterpart for AIGZ inward investment.

Sponsoring minister 9

  • Kanishka Narayan → src
    Then Parliamentary Under-Secretary of State for AI and Online Safety; issued HCWS1057 publishing CP 1440 (13 November 2025) and HCWS1289 on the Lanarkshire designation (29 January 2026); responsible Cabinet minister for the department is now Liz Kendall (Secretary of State for Science, Innovation an
  • Baroness Lloyd of Effra → src
    Then PUS for Digital Economy; repeated the CP 1440 (HLWS1056) and Lanarkshire (HLWS1290) WMSs in the Lords.
  • Peter Kyle → src
    Then Secretary of State for Science, Innovation and Technology when the AI Opportunities Action Plan and UK Compute Roadmap were published; the SoS role for the department is now held by Liz Kendall.
  • Lord Vallance of Balham → src
    Then Minister of State for Science, Research and Innovation; repeated the Action Plan WMS in the Lords (HLWS357, 13 January 2025).
  • Feryal Clark → src
    Then Parliamentary Under-Secretary of State at DSIT; lead Commons spokesperson on AIGZ progress in oral questions and PQs through 2025.
  • Jonathan Reynolds → src
    Then Secretary of State for Business and Trade; laid the Modern Industrial Strategy (HCWS725, 23 June 2025) that frames AIGZs within Invest 2035; the SoS role is now held by Peter Kyle.
  • Sarah Jones → src
    Then Minister of State (Industry); announced the Network Charging Compensation Scheme uplift consultation (HCWS869, 21 July 2025) — a Modern Industrial Strategy commitment relevant to AIGZ energy costs.
  • Baroness Gustafsson → src
    Then Minister of State; repeated the Modern Industrial Strategy WMS in the Lords (HLWS723).
  • Baroness Jones of Whitchurch → src
    Then PUS (Minister for Legislation); repeated the Network Charging Compensation Scheme uplift WMS in the Lords (HLWS869).

Lead committee 4

  • Science, Innovation and Technology Committee → src
    Took correspondence on CP 1440 from the Minister and replied via the Chair (December 2025).
  • Business and Trade Committee → src
    Holding an inquiry into AI, business and the future of the workforce (launched March 2026) and received the Secretary of State's June 2025 letter on the Modern Industrial Strategy.
  • Secondary Legislation Scrutiny Committee → src
    Drew SI 2026/13 to the special attention of the House in its 39th Report (30 October 2025).
  • Regulatory Policy Committee → src
    Issued an opinion on the impact assessment for the related Town and Country Planning (Appeals) regulations 2026 (February 2026).

Regulator / delivery programme 5

  • Ofgem → src
    Published RIIO-3 Final Determinations (4 December 2025) unlocking £28bn of electricity-transmission investment — the network-readiness pillar of CP 1440.
  • Planning Inspectorate → src
    Examines NSIP applications including data-centre directions under SI 2026/13; reflected in the Wapseys Wood s.35 direction (March 2026).
  • Biometrics and Surveillance Camera Commissioner → src
    Submitted a published response to the DSIT AI Growth Lab call for evidence (January 2026) addressing surveillance-camera and biometric implications.
  • Solicitors Regulation Authority → src
    Filed a written response to the AI Growth Lab call for evidence on regulatory sandboxing (27 March 2026).
  • UK Export Finance ↗
    Named in the responsible-bodies set for inward-investment financing instruments around AI infrastructure deals.

Commentator 9

  • Luke Myer → src
    Labour MP; raised oral questions on AIGZ contribution to economic growth in Teesside (10 September 2025) and AIGZ set-up progress (25 June 2025).
  • Steve Yemm → src
    Labour MP for Mansfield; raised oral question on AIGZ regeneration impact in Mansfield (18 March 2026).
  • Oliver Ryan → src
    Labour MP for Burnley; raised oral question on AIGZ impact on Burnley economic growth (17 December 2025).
  • Lauren Edwards → src
    Labour MP for Rochester and Strood; opened the February 2025 Commons exchange on AIGZ set-up progress.
  • Sir Jeremy Wright → src
    Conservative MP for Kenilworth and Southam; participated in the February 2025 AIGZ Commons exchange.
  • Jim Shannon → src
    DUP MP for Strangford; tabled PQ 37150 on AIGZ progress in the devolved nations (March 2025).
  • Andrew Mitchell → src
    Conservative MP for Sutton Coldfield; tabled PQ 32938 on engagement with the West Midlands Combined Authority and Birmingham on AIGZs (February 2025).
  • Baroness Freeman of Steventon → src
    Crossbench peer; tabled HL5665 on heat-recovery systems in AI growth zones such as Culham (March 2025).
  • Sir Oliver Dowden → src
    Conservative MP for Hertsmere; tabled PQ 126627 (April 2026) on local-planning-authority preparation of Article 4 directions under the Town and Country Planning Act 1990 — adjacent to AIGZ planning-mechanic discourse.

Political commitments

What parties and ministers have promised — manifesto pledges, King's Speech announcements, ministerial statements. Each card shows what was said, by whom, and when, with a link to the original source.

  • commitment Ministerial statement Labour · 2025 · AI Opportunities Action Plan — Government Response (CP 1242)

    Action Plan acceptance: 'Leveraging AI Growth Zones to support partnered companies and ensuring that new compute capacity is utilised strategically'

    Leveraging AI Growth Zones to support partnered companies and ensuring that new compute capacity is utilised strategically.

    Why linked: Government Response (CP 1242) accepting the Clifford Action Plan's AIGZ recommendation as policy commitment.

    Source: AI Opportunities Action Plan — Government Response (CP 1242) · Original ↗
  • commitment Ministerial statement Labour · 2025 · The UK’s Modern Industrial Strategy

    Modern Industrial Strategy: AIGZs as digital pillar of Invest 2035

    Why linked: Modern Industrial Strategy WMS (HCWS725) and Digital and Technologies Sector Plan position AIGZs within the 10-year industrial-strategy framework.

    Source: The UK’s Modern Industrial Strategy · Original ↗
  • commitment Ministerial statement Labour · 2025 · AI Growth Zones — Commons Hansard Debate, 13 November 2025

    CP 1440 delivery package

    The AI growth zones programme will accelerate the delivery of large-scale AI data centres by removing barriers to construction and creating the best possible environment for investment.

    Why linked: Commons debate accompanying publication of CP 1440 (13 November 2025).

    Source: AI Growth Zones — Commons Hansard Debate, 13 November 2025 · Original ↗

Open questions & gaps

Known gaps in the evidence base and what's still pending.

Pending in the lifecycle

  • Government response to the DESNZ 'Accelerating electricity network connections for strategic demand' consultation (closed 12 March 2026).
  • Government response to the AI Growth Lab call for evidence and call-for-evidence (closed 18 December 2025 / earlier October 2025 phase).
  • Further AIGZ designations beyond the four already announced — CP 1440 implied ongoing application rounds.
  • Whether OpenAI's 'Stargate UK' commercial pause translates into a firm withdrawal from the North East AIGZ headline numbers.

Beyond the corpus

  • MISSING An updated impact assessment for SI 2026/13 quantifying the volume and value of data-centre projects expected to use the s.35 route. — SI 2026/13's Explanatory Note states a full impact assessment was not produced; the SLSC's special-attention report would normally trigger follow-up analysis.
  • MISSING A National Audit Office or PAC review of AIGZ delivery and value for money. — Programme is at the scale (£100bn projected investment, 15,000+ jobs) where independent audit would normally follow.
  • MISSING A published memorandum of understanding between DSIT, MHCLG and Ofgem on inter-regulator co-ordination for AIGZ grid and planning sequencing. — CP 1440 commits to co-ordinated delivery but the operational governance document is not in the corpus.

Confidence gaps

  • Status of any non-CP-1440 'AI Growth Zone' designations referenced in earlier material (e.g. Culham): the post-CP-1440 framework lists only the four named zones, but earlier PQs reference Culham as an example.
  • Live state of the OpenAI Stargate UK investment — DSIT cites commercial sensitivity and updates are 'in due course' (PQ 128686).