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AI growth zones

Lifecycle: Implementation Biometrics and Surveillance Camera Commissioner · 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 3 hours ago

Summary

What this is

AI Growth Zones (AIGZs) are designated UK areas where DSIT is accelerating planning and grid access for large-scale AI data centres and supporting energy infrastructure, anchored by the November 2025 Command Paper 'Delivering AI Growth Zones' (CP 1440) and the January 2025 AI Opportunities Action Plan.

Why it matters

The programme stitches together the Planning Act 2008 NSIP regime (via SI 2026/13 adding data centres as a prescribed category), the Electricity Act 1989 s.37 consent route and a new network-charging compensation regime to deliver up to £100bn of investment and ~15,000 jobs across four zones — making AIGZs the principal vehicle for translating the AI Opportunities Action Plan into physical infrastructure.

Current status

Operational: five zones designated (Culham, North East, North Wales, South Wales, Lanarkshire); SI 2026/13 in force from 8 January 2026; AI Growth Lab call for evidence closed and responses (SRA, Biometrics and Surveillance Camera Commissioner) published; delivery risk emerged in April 2026 around the North East zone following OpenAI's pause of its Stargate UK investment.

What changed recently

  • 21 Apr 2026 — Minister confirms no change to NE AI Growth Zone energy pricing or regulatory environment despite OpenAI pausing its Stargate UK investment — first explicit acknowledgement of an investor risk to the NE headline.
  • 27 Apr 2026 — Follow-up PQ on whether Nscale will still invest in the North East AIGZ; government calls discussions commercially sensitive.
  • 26 Mar 2026 — SI 2026/350 amends the Local Planning modification regulations, tightening how minerals and waste plan documents interact with local plans — relevant where AIGZ sites sit within minerals/waste planning areas.
  • 27 Mar 2026 — SRA publishes its response to the DSIT AI Growth Lab call for evidence, signalling regulator concern about cross-economy sandbox proposals affecting legal services.
  • 29 Jan 2026 — Lanarkshire designated as the fifth AI Growth Zone (3,400+ jobs target); WMS HCWS1289 / HLWS1290 delivered alongside AI Opportunities Action Plan One Year On report.

Key documents

Framework

Statutory basis

Operationalising

Implementation

Scrutiny

Review

Consultations

Stakeholders

Sponsoring department 3

  • Department for Science, Innovation and Technology → src
    Lead department; designs AIGZ designation criteria, runs the application gateway and the AI Growth Lab
  • Ministry of Housing, Communities and Local Government → src
    Co-sponsor of the planning route; brought SI 2026/13 (signed by Matthew Pennycook) and the related Local Planning amendments
  • Office for Investment → src
    Investor engagement support; mobilised local authorities and investors as AIGZ delivery accelerated through 2025

Sponsoring minister 10

  • Kanishka Narayan → src
    Then Parliamentary Under-Secretary of State for AI and Online Safety; issued HCWS1057 (CP 1440 launch, Nov 2025), HCWS1289 (Lanarkshire designation, Jan 2026) and signed correspondence to the SIT Committee on CP 1440
  • Peter Kyle → src
    Then Secretary of State for Science, Innovation and Technology when he commissioned and published the AI Opportunities Action Plan (Jan 2025) and the UK Compute Roadmap (HCWS857, July 2025); the department is now led by Liz Kendall as Secretary of State
  • Baroness Lloyd of Effra → src
    Then Parliamentary Under-Secretary of State for Digital Economy; repeated the Narayan WMSs in the Lords (HLWS1056 on CP 1440, HLWS1290 on Lanarkshire)
  • Feryal Clark → src
    Then PUS for Science, Innovation and Technology; answered the first AIGZ oral questions in Feb 2025 and led PQ replies through spring 2025 on Vale of Glamorgan, West Midlands and devolved-nations AIGZ engagement
  • Matthew Pennycook → src
    Minister of State at MHCLG; signed SI 2026/13 adding data centres to the NSIP business/commercial projects schedule
  • Sarah Jones → src
    Then Minister of State (Industry); issued HCWS869 (July 2025) on the Network Charging Compensation Scheme uplift — the grid-cost mechanism material to AIGZ data-centre economics
  • Jonathan Reynolds → src
    Then Secretary of State for Business and Trade; launched the Modern Industrial Strategy (HCWS725, June 2025) — the umbrella framework for AIGZs; the department is now led by Peter Kyle as Secretary of State for Business and Trade
  • Lord Vallance of Balham → src
    Then Minister of State for Science, Research and Innovation; repeated Kyle's Action Plan WMS in the Lords (HLWS357, Jan 2025)
  • Baroness Gustafsson → src
    Then Minister of State for Investment; repeated the Modern Industrial Strategy WMS in the Lords (HLWS723)
  • Baroness Jones of Whitchurch → src
    Then PUS (Minister for Legislation); repeated HCWS869 in the Lords (HLWS869, Network Charging Compensation Scheme)

Lead committee 2

  • Science, Innovation and Technology Committee → src
    Took on CP 1440 scrutiny: received minister's transmission letter (Nov 2025) and replied to the Minister for AI and Online Safety in Dec 2025
  • Secondary Legislation Scrutiny Committee → src
    Drew Draft SI 2026/13 to the special attention of the House in its 39th Report — the highest scrutiny flag for the regime's main planning instrument

Regulator / delivery programme 5

  • Biometrics and Surveillance Camera Commissioner → src
    Submitted formal response to the DSIT AI Growth Lab call for evidence — direct independent commissioner intervention on the AIGZ-adjacent regulatory sandbox
  • Solicitors Regulation Authority → src
    Published response to the AI Growth Lab call for evidence (March 2026), engaging on cross-economy sandbox implications for reserved legal activities
  • Ofgem → src
    Regulator engaged via SI 2026/223 designated strategic plans and the Network Charging Compensation Scheme uplift consultation
  • Planning Inspectorate → src
    Examines DCO applications for data-centre projects directed under s.35 Planning Act 2008 following SI 2026/13
  • Regulatory Policy Committee → src
    Issued opinion on the planning appeals impact assessment for SI 2026/122 — adjacent to AIGZ planning acceleration

Commentator 8

  • Sir Oliver Dowden → src
    Conservative, Hertsmere — tabled PQ on Article 4 directions under the Town and Country Planning Act 1990, intersecting with the planning-acceleration frame around AIGZs
  • Luke Myer → src
    Labour MP — repeatedly raised AIGZ progress and Teesside contribution at oral questions (June and Sept 2025)
  • Steve Yemm → src
    Labour, Mansfield — tabled oral question (March 2026) on AIGZ impact on regeneration in Mansfield, signalling backbench pressure for further zones beyond the four named
  • Oliver Ryan → src
    Labour MP — tabled oral question (Dec 2025) on AIGZ impact on Burnley
  • Lauren Edwards → src
    Labour, Rochester and Strood — raised AIGZ progress at the first oral question slot (Feb 2025)
  • Jim Shannon → src
    DUP, Strangford — tabled PQ on AIGZ rollout in the devolved nations (March 2025)
  • Mr Andrew Mitchell → src
    Conservative, Sutton Coldfield — tabled PQ probing whether West Midlands and Birmingham had been engaged on AIGZs (Feb 2025)
  • Sir Jeremy Wright → src
    Conservative, Kenilworth and Southam — opposition voice in the Feb 2025 AIGZ chamber debate

Witnesses & evidence-givers 1

  • Commons Library → src
    Published Research Briefing CBP-10315 on data centres and AI infrastructure (Nov 2025) — the principal independent reference text on the regime

Political commitments

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

    AI Opportunities Action Plan accepted in full

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

    Why linked: Government Response (CP 1242) commits to the AIGZ recommendation as the principal infrastructure delivery vehicle.

  • commitment Ministerial statement Labour · 2025 · The UK’s Modern Industrial Strategy

    AIGZs as flagship of Modern Industrial Strategy digital/technologies sector plan

    Why linked: Reynolds's WMS HCWS725 and the Digital and Technologies Sector Plan place AIGZs at the centre of the 10-year industrial strategy.

  • commitment Ministerial statement Labour · 2025 · AI Growth Zones to create thousands of jobs and unlock up to £100 billion in in…

    Up to £100bn investment and 15,000+ jobs across AIGZs

    AI Growth Zones to create thousands of jobs and unlock up to £100 billion in investment

    Why linked: Headline numbers published with CP 1440 and confirmed in PQ 119692 (15,000 jobs by early 2030s).

Open questions & gaps

Pending in the lifecycle

  • Outcome of the AI Growth Lab call for evidence — DSIT has not yet published a consolidated government response.
  • Resolution of the OpenAI Stargate UK pause and whether Nscale's NE investment proceeds — directly exposes the 5,000-job NE headline.
  • Outcome of the Network Charging Compensation Scheme uplift consultation announced in HCWS869.
  • Whether further AIGZs will be designated beyond the five sites (Mansfield, Burnley, Teesside, West Midlands all surfaced in PQs as candidate areas).

Beyond the corpus

  • MISSING NAO value-for-money review of AIGZ delivery — Programme of this scale (~£100bn investment claim, 15,000 jobs, planning carve-out) would normally attract NAO scrutiny within 18-24 months of launch.
  • MISSING First s.35 direction by the Secretary of State for a data-centre project under SI 2026/13 — SI in force since 8 Jan 2026; corpus contains no published direction yet — this is the test case for the planning route.
  • MISSING Published government response to the AI Growth Lab call for evidence — Consultation opened Dec 2025, regulator responses published Jan-Mar 2026; consolidated government response is overdue.

Confidence gaps

  • Status of Culham as a designated AIGZ vs. the four 'new' zones — the Action Plan named Culham but later programme communications refer to four (north Wales, south Wales, Lanarkshire, north-east).
  • Extent to which Wales and Scotland devolution settlements interact with AIGZ planning routes (SI 2026/13 extends to England and Wales; the Lanarkshire and devolved zones rely on different planning regimes).