The UK Government has confirmed that North Wales will be the location of a central new AI Growth Zone, expected to generate more than 3,400 jobs and unlock part of an estimated £100 billion in investment across the national programme
The implementation of the AI Growth Zone is part of the government’s effort to stimulate economic renewal through its Modern Industrial Strategy, linking advanced technology with new infrastructure and highly skilled employment.
A new hub for advanced technology
The newly designated AI Growth Zone will serve as a regional hub for artificial intelligence development, bringing together computing power, research expertise, and business innovation.
The aim is to accelerate breakthroughs that can enhance everyday life, from innovative medical technologies to more sustainable industrial processes. North Wales joins a growing list of UK locations selected to host these national AI hubs, which are designed to scale high-potential industries while bringing long-term economic benefits to local communities.
An initial £5 million package will support business adoption of AI and skills development in each zone. In North Wales, this funding will help local employers integrate AI tools, expand research and development activity and support start-ups looking to scale. When combined with wider reforms to planning and energy infrastructure, these measures are expected to unlock significant private investment over the coming years.
Major infrastructure projects for the region
The government also confirmed that North Wales will host two major infrastructure initiatives. The new AI Growth Zone and the UK’s first small modular reactor (SMR) project at Wylfa. The SMR development is projected to begin with three reactors, with potential expansion to as many as eight. Power generation from the site is anticipated to come online in the mid-2030s.
The AI Growth Zone and the SMR programme are forecast to support nearly 6,500 jobs across the region, ranging from construction roles to long-term careers in advanced energy and AI research. The twin-project announcement signals the government’s intention to make North Wales a cornerstone of its high-tech and clean energy ambitions.
Liz Kendall, Secretary of State for Science, Innovation and Technology, said:
“AI Growth Zones will be a game-changer for our communities and will bring thousands of new jobs and millions of pounds in investment right to the places that need it most.”
“We will make sure people have the skills they need so they can fully realise the opportunities that AI presents – helping to nurture the tech leaders of tomorrow and supporting our economy with a rich pool of talent.”
Faster development through planning and energy reforms
To ensure rapid progress, the government has introduced new reforms to expedite both planning and access to energy infrastructure for AI Zones. Approval times could fall from several years to just a few months, supported by a dedicated AI planning team and a £4.5 million fund to assist local authorities.
AI Growth Zones across Great Britain will receive priority access to the national energy grid. At the same time, data centres located within them will qualify for significant electricity cost reductions in areas where this helps ease pressure in the broader network. Developers will also be permitted to construct their own high-voltage lines and substations, reducing delays and lowering overall project costs.
These reforms aim to remove barriers that can hinder the expansion of high-tech sectors, enabling regions to benefit more quickly from investment and job creation.
Building regional strength and national renewal
The AI Growth Zone in North Wales will operate across two sites: Prosperity Parc on Anglesey and Trawsfynydd in Gwynedd. Work has already begun to secure an investment partner, with construction expected to follow once agreements are finalised.
In the longer term, the zones will act not only as centres for technological innovation but also as hubs for regional AI adoption. Funds will support the integration of AI into public services and local industries, ensuring that communities benefit directly from emerging technologies.
With three AI Growth Zones already announced and more to come, the programme is set to play a significant role in shaping the UK’s technological and economic landscape over the next decade.
