Experts back AI growth zones to power Yorkshire’s digital economy
The creation of AI growth zones across Yorkshire is being hailed as a pivotal move to attract global technology firms and drive long-term economic growth. At a roundtable hosted by The Yorkshire Post and Turner & Townsend, industry leaders agreed that designating dedicated AI zones would help streamline infrastructure planning and position the region as a prime location for data centre investment.
Peter Hall, Project Director for Data Centres at Turner & Townsend, said Yorkshire is already drawing attention from major players such as Google, Meta and Microsoft, which are considering data centre projects around Leeds. “It’s more than just land and power — we need the right fibre, water, and industrial support,” he said, stressing that success depends on strong utilities, reliable energy supply and efficient local permitting.
The initiative aligns with the UK Government’s strategy to establish AI Growth Zones nationwide. Under the policy, data centres are now classed as Critical National Infrastructure, putting them on par with essential services like water and energy and unlocking targeted government support to accelerate investment. The goal is to create high-skilled jobs, foster innovation and cement the UK’s leadership in AI technology.
York and North Yorkshire have submitted a formal bid to become one of the country’s first AI Growth Zones, supported by the York and North Yorkshire Combined Authority, the University of York and Drax Power Station.
The proposal centres on a carbon-negative data centre at Drax and could unlock up to £85 billion in regional growth. Andy Kerr, Director of Economy at the Combined Authority, said data centres must be fully integrated into the region’s business ecosystem, with strong links to digital skills programmes and the University of York’s expertise in AI assurance.
However, challenges persist. Chartered architect Ian Chapman of Corstorphine & Wright cited the difficulties of repurposing industrial sites for large-scale data centres, noting that “security, infrastructure and regulation remain complex hurdles.” He called for faster and more informed planning decisions to prevent delays.
Karen Stafeckis, Development Director at McLaren Regeneration, added that data centres could play a valuable role in sustainable development, suggesting that excess heat from facilities could be repurposed for nearby housing and commercial projects such as York Central.
The discussions underscored a unified ambition: to position Yorkshire at the forefront of the UK’s AI revolution through collaboration between industry, government and academia. While challenges in infrastructure and regulation remain, the region’s proactive approach, sustainability focus and growing tech ecosystem signal a strong case for Yorkshire to become a leading AI growth hub in the years ahead.
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