Mayor David Skaith has launched a bid for York and North Yorkshire to be named one of the UK’s first AI Growth Zones, in a move that could generate up to £85 billion in economic output across the Yorkshire and Humber region. The proposal, submitted by the York and North Yorkshire Combined Authority, is backed by North Yorkshire Council, Drax Power Station and the University of York.
At its heart is the Drax Power Station site near Selby, earmarked to become a national centre for carbon-negative energy, agri-tech innovation and AI development. Existing renewable energy infrastructure would support a new AI and Clean Energy Campus planned for the site.
“This region has a proud record of innovation and we are ready to work with Government to turn this vision into reality,” said Mayor Skaith. “Seizing on our established history at the forefront of innovation… we will deliver a pioneering, world-class AI Growth Zone.”
Richard Gwilliam, development director at Drax, said the initiative could unlock billions in growth, helping to build an innovation ecosystem that attracts major businesses and fosters local entrepreneurship. He said AI Growth Zone status would support plans for a carbon-negative data centre, placing Drax at the forefront of sustainable energy.
The University of York is also expected to play a central role. Vice-Chancellor Charlie Jeffery said the region could lead in responsible AI, with ethical and safety considerations embedded from the outset to ensure local and national benefit.
New energy infrastructure is already under way. The Lakeside Energy Park, recently opened in North Yorkshire, has a 100 MW capacity and can power 30,000 homes a day. Project manager Mark Selvaratnam said it would support the UK’s target of reaching net-zero emissions by 2050.
Drax is in talks with data centre operators over potential energy supply agreements, aiming to co-locate operations to manage soaring demand driven by AI growth. Goldman Sachs forecasts a 160 per cent increase in data centre power demand by 2030.
But Drax’s environmental record remains under scrutiny. Greenpeace and Friends of the Earth have criticised police actions near the plant as pre-emptive moves against planned protests, raising questions over the company’s carbon emissions and sustainability claims.
With a Government decision on the AI Growth Zone bid due after the 11 June spending review, the region’s ambition to blend cutting-edge technology with clean energy and economic regeneration now rests on the outcome.
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