Britain's AI Growth Zones Are a Grid Connection Policy in Disguise

The British government's plan to become what it calls an AI superpower has a physical core, and it is measured in megawatts. In February the Department for Science, Innovation and Technology opened the call for AI Growth Zones, inviting local and regional authorities, data centre developers and energy companies to propose sites. The government says it will work with network operators to scale each zone rapidly to 500 MW or more, which it describes as enough to power roughly two million homes.

The first zone has already been named: Culham in Oxfordshire, home of the UK Atomic Energy Authority. The expression of interest asks for sites with large existing power connections, with a current capacity of 500 MW or more, or a clear plan for how energy capacity can be increased. It also favours locations close to suitable sites for major energy infrastructure, such as nuclear reactors, solar and wind farms, or battery storage. Developers and energy firms are being asked to set out timelines and milestones showing how they will ramp up energy capacity, partnership opportunities with local authorities, and what additional support they need from government.

The proposals will inform final site selection and broader policy decisions later this year. Inside a zone, the promise is faster planning permission for AI infrastructure, including data centres, and the energy connections needed to power them. The zones come from the AI Opportunities Action Plan, which the Prime Minister launched on 13 January. It cites an IMF estimate that, if AI is fully embraced, it could raise productivity by as much as 1.5 percentage points a year, gains it says could be worth up to an average of £47 billion a year to the UK over a decade.

Vantage Data Centres, Nscale and Kyndryl committed £14 billion and 13,250 jobs, on top of £25 billion in AI investment announced at the International Investment Summit. There is also the question of what power the zones will use.