North East to become AI powerhouse, thanks to new Growth Zone

A new AI Growth Zone has been launched in the North East, promising to accelerate job creation and skills development.

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The UK Government says that thousands of jobs are set to be unlocked as a powerhouse coalition, including British AI firm Nscale, local universities and leading skills providers, forms to supercharge planning, new opportunities and the build of the North East’s new AI Growth Zone.  

With new roles expected, including in construction, energy and cutting-edge AI, the new taskforce will work hand-in-hand with local organisations to create training and apprenticeship routes that ensure the benefits are felt across the region.  

With members spanning the AI sector – from data centre builders to local training providers and world-class researchers – the taskforce kicks off work.

Technology Secretary Liz Kendall said: “The North East is once again leading the charge – this time in the AI revolution.  

“We’re backing local talent
with the skills and training they need to thrive in the jobs of tomorrow. 

“From laying the physical foundations and building data centres to launching careers in AI, this Growth Zone is about creating real opportunities for people right across the region.”

The Taskforce will initially prioritise getting the AI Growth Zone up and running, before maximising the impact of AI for the local economy, jobs and opportunities for young people. 

The North East – birthplace of the industrial revolution and home to a wealth of leading universities including Newcastle, Durham, Sunderland and Northumbria – is set to lead the UK’s AI revolution.  

The UK Government has designated the region as an AI Growth Zone, unlocking up to £30 billion in investment to transform its tech landscape, create long-term AI careers, and
boost public services like healthcare.  

Sage Chief of Staff Ben Aung said: “Today’s visit is a vote of confidence in the North East – our new AI Growth Zone puts the region’s innovation on the map and, with early careers in focus, will inspire and upskill the next generation of AI talent.  
“To turn that potential into tangible results, businesses and our colleges and universities must work more closely than ever – aligning curricula with real roles, sharing expertise and opening pathways into industry.  

“From our global Cobalt Park HQ, Sage is turning that momentum into practical, trusted AI for small businesses – freeing people from time-sapping admin so the whole region can be more productive and prosper.”

With access to the UK’s largest source of low-carbon energy, the North
East is primed for sustainable AI deployment.  

Blackstone has already committed £10 billion to the Cambois near Blyth site, with the new Growth Zone status further boosting opportunities for an extra £20 billion from future partners.  

Meanwhile, Nscale, OpenAI and NVIDIA are launching Stargate UK – a sovereign AI infrastructure platform. 

Phase one will see up to 8,000 NVIDIA GPUs deployed early next year, with the potential to scale to 31,000 NVIDIA GPUs over time, with key sites including Cobalt Park in the North East. 

It follows a landmark UK-US deal on AI, Quantum and Nuclear technologies, announced by the Prime Minister and President Trump, to boost jobs and innovation.  

As part of this, X-Energy and Centrica announced plans to help power the UK’s clean energy future – starting with
up to 12 advanced modular reactors in Hartlepool. 

The Government claims that this project could supply power to up to 1.5 million homes, generate £12 billion in value for the North East, and create around 2,500 high-quality jobs in another major boost for the area.

“We know AI can be transformational for people and the local economy,” North East Mayor Kim McGuinness said.

“This investment will mean thousands of jobs for local people and the North East leading innovations in tech.
 
“Now, we need to work with businesses to develop the talent right here, and make sure the benefits of AI reach the people of the region. We’ve already mobilised a taskforce of business leaders, industry experts and skills providers to deliver exactly that. 

“I want kids in school here today to see their place in an AI-driven future, and this is how we make sure it provides a new future for our young people.”

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