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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 37 minutes ago

Summary

What this is

AI Growth Zones (AIGZs) are a UK Government programme designating geographic areas — currently north Wales, south Wales, Lanarkshire and the north-east of England — where DSIT accelerates planning consent and grid connection for large-scale AI data centres, sitting within the AI Opportunities Action Plan and the Modern Industrial Strategy.

Why it matters

The programme couples a new statutory NSIP route for data centres under SI 2026/13 with bespoke grid-connection support, and is the principal vehicle through which the government is targeting up to £100bn of AI infrastructure investment and 15,000+ jobs across the four designated zones.

Current status

All four headline zones are designated (Lanarkshire was confirmed on 29 Jan 2026); the NSIP data-centre Amendment Regulations came into force on 8 Jan 2026; and DSIT is actively engaging investors against the backdrop of a reported OpenAI/Stargate pause that has prompted parliamentary scrutiny of the North East zone.

What changed recently

  • 27 Apr 2026 — DSIT confirms in PQ 128686 that work with the North East Combined Authority continues despite Nscale/Stargate uncertainty.
  • 21 Apr 2026 — PQ 126560 surfaces the OpenAI Stargate UK pause as a live delivery risk to the North East AIGZ's £30bn / 5,000-jobs headline.
  • 27 Mar 2026 — Solicitors Regulation Authority publishes its response to the DSIT AI Growth Lab call for evidence.
  • 3 Feb 2026 — Lanarkshire designated as the fourth AI Growth Zone, with 3,400+ projected jobs.
  • 8 Jan 2026 — SI 2026/13 made and comes into force on 8 January 2026, adding data centres to the prescribed NSIP descriptions under Planning Act 2008 s.35.

Key documents

Framework

Statutory basis

Operationalising

Implementation

Scrutiny

Review

Consultations

Stakeholders

Sponsoring department 3

  • Department for Science, Innovation and Technology → src
    Programme owner; designates AIGZs, runs the AI Growth Lab consultation and publishes the AI Opportunities Action Plan and CP 1440.
  • Ministry of Housing, Communities and Local Government → src
    Sponsor of SI 2026/13 and adjacent planning reforms (appeals procedure SI 2026/122); signs s.35 directions for data-centre NSIPs.
  • Office for Investment → src
    Investor-facing arm mobilising capital into AIGZ sites alongside DSIT.

Sponsoring minister 9

  • Kanishka Narayan → src
    Parliamentary Under-Secretary of State for AI and Online Safety when WMS HCWS1057 (publishing CP 1440, 13 Nov 2025) and HCWS1289 (Lanarkshire designation, 29 Jan 2026) were issued; live current status unknown — treat as historical.
  • Baroness Lloyd of Effra → src
    Then Lords minister (Digital Economy) repeating the AIGZ WMS in the Lords (HLWS1056, Nov 2025; HLWS1290, Jan 2026); live current status unknown — treat as historical.
  • Peter Kyle → src
    Then Secretary of State for Science, Innovation and Technology who commissioned the AI Opportunities Action Plan and published the UK Compute Roadmap (HCWS857); the department is now led by Liz Kendall as Secretary of State for Science, Innovation and Technology.
  • Lord Vallance of Balham → src
    Then Minister of State for Science, Research and Innovation repeating the AI Opportunities Action Plan WMS in the Lords (HLWS357, Jan 2025); live current status unknown — treat as historical.
  • Feryal Clark → src
    Then Parliamentary Under-Secretary of State at DSIT who answered the Feb 2025 oral questions on AIGZ progress and devolved-nation engagement.
  • Jonathan Reynolds → src
    Then Secretary of State for Business and Trade who laid the Modern Industrial Strategy (HCWS725, 23 Jun 2025); the department is now led by Peter Kyle as Secretary of State for Business and Trade.
  • Sarah Jones → src
    Then Minister of State (Industry) who announced the Network Charging Compensation Scheme uplift consultation (HCWS869, Jul 2025); live current status unknown — treat as historical.
  • Baroness Gustafsson → src
    Then Minister of State who repeated the Industrial Strategy WMS in the Lords (HLWS723, Jun 2025); live current status unknown — treat as historical.
  • Baroness Jones of Whitchurch → src
    Then PUS (Minister for Legislation) who repeated the NCCS uplift WMS and the original AI Opportunities Action Plan terms of reference WMS in the Lords; live current status unknown — treat as historical.

Lead committee 3

  • Science, Innovation and Technology Committee → src
    Committee Chair wrote to the Minister for AI and Online Safety on Delivering AI Growth Zones (Dec 2025); received the Minister's prior correspondence on CP 1440 (Nov 2025).
  • Secondary Legislation Scrutiny Committee → src
    Drew the draft Infrastructure Planning (Business or Commercial Projects) (Amendment) Regulations 2025 to the special attention of the House (39th Report, Oct 2025).
  • Regulatory Policy Committee → src
    Published an opinion on the impact assessment for the related planning appeals SI (Feb 2026).

Regulator / delivery programme 4

  • Ofgem → src
    Grid-cost regulator engaged through the Network Charging Compensation Scheme uplift consultation (Jul 2025), which sits upstream of AIGZ power economics.
  • Planning Inspectorate → src
    Examining authority for NSIPs created via s.35 directions enabled by SI 2026/13; in scope wherever a data-centre project is directed into the DCO regime.
  • Biometrics and Surveillance Camera Commissioner → src
    Submitted a published response to the DSIT AI Growth Lab call for evidence (Jan 2026).
  • Solicitors Regulation Authority → src
    Published a response to the DSIT AI Growth Lab call for evidence (Mar 2026).

Commentator 8

  • Sir Oliver Dowden → src
    Conservative, Hertsmere — tabled PQ 126560 on the OpenAI Stargate pause and its impact on the North East AIGZ, and follow-up PQ 128686 on Nscale's continued investment.
  • Steve Yemm → src
    Labour, Mansfield — tabled oral question on AIGZ impact on regeneration in Mansfield (Mar 2026).
  • Oliver Ryan → src
    Labour, Burnley — tabled oral question on potential AIGZ impact on economic growth in Burnley (Dec 2025).
  • Luke Myer → src
    Labour — tabled oral questions on AIGZ progress (Jun 2025) and AIGZ contribution to economic growth in Teesside (Sep 2025).
  • Lauren Edwards → src
    Labour, Rochester and Strood — opened the Feb 2025 Commons exchange on AIGZ progress.
  • Sir Jeremy Wright → src
    Conservative, Kenilworth and Southam — spoke in the Feb 2025 AI Growth Zones debate.
  • Jim Shannon → src
    DUP, Strangford — tabled PQ 37150 on AIGZ progress in devolved nations (Mar 2025).
  • Andrew Mitchell → src
    Conservative, Sutton Coldfield — tabled PQ 32938 on AIGZ engagement with West Midlands authorities (Feb 2025).

Witnesses & evidence-givers 1

  • Commons Library → src
    Published CBP-10315 on data centres, including a dedicated AIGZ section (s.3.3), as the principal independent reference for the regime.

Political commitments

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

    Establish AI Growth Zones to cluster compute and data-centre infrastructure

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

    Why linked: Government Response to the AI Opportunities Action Plan formally adopts the AIGZ recommendation.

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

    Modern Industrial Strategy commitment to digital and technologies as a growth-driving sector

    Why linked: Industrial Strategy WMS (HCWS725, 23 Jun 2025) names digital and technologies as one of eight growth-driving sectors and frames AIGZs as a delivery mechanism.

  • 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 thousands of jobs through AIGZs

    AI Growth Zones to create thousands of jobs and unlock up to £100 billion in investment, as new site confirmed for North Wales.

    Why linked: Headline ministerial commitment accompanying CP 1440 and the North Wales designation.

  • commitment Ministerial statement Labour · 2026 · To ask the Secretary of State for Science, Innovation and Technology, how many …

    15,000+ jobs across AIGZs by early next decade

    AI Growth Zones are expected to create more than 15,000 jobs spanning construction activity, permanent operational roles and wider supply‑chain employment.

    Why linked: Ministerial answer to PQ 119692 quantifying the aggregate jobs commitment.

Open questions & gaps

Pending in the lifecycle

  • Whether the OpenAI/Stargate UK pause materially alters the North East AIGZ's £30bn / 5,000-jobs envelope.
  • Outcome of the AI Growth Lab call for evidence and any resulting cross-economy sandbox legislation.
  • Whether further AIGZs are designated beyond the initial four (Mansfield, Burnley, Teesside, West Midlands, Vale of Glamorgan are all raised by MPs).
  • Outcome of the Network Charging Compensation Scheme uplift consultation and its bearing on AIGZ economics.

Beyond the corpus

  • MISSING A published Government response to the AI Growth Lab call for evidence — The call for evidence closed and stakeholder responses (BSCC, SRA) are public; a consolidated Government response would be expected.
  • MISSING An NAO value-for-money study on AIGZ programme delivery — Programmes of this fiscal scale (≤£100bn cited investment, 15,000 jobs) ordinarily attract NAO scrutiny; none is in the corpus.
  • MISSING Devolved-administration agreements / MoUs for the Welsh and Scottish AIGZs — North Wales, south Wales and Lanarkshire engage devolved planning and consenting regimes but no published intergovernmental instrument is in the corpus.

Confidence gaps

  • South Wales AIGZ designation date and anchor investor are referenced in Hansard (4 Feb 2026) but no standalone designation announcement appears in the events list.
  • Subsidy control treatment of zone-level benefits (energy cost uplifts, planning fast-track) is not addressed in any corpus document.