Technology Secretary Peter Kyle will unveil ambitious plans to transform former industrial sites into “hotbeds” for artificial intelligence (AI) development as part of a pitch to American investors during his visit to the United States.
Speaking at a business summit in San Jose, California, Mr Kyle will outline how “relics of economic eras past” can be repurposed into designated “growth zones” aimed at attracting AI investment and boosting Britain’s technological infrastructure.
Revitalising industrial wasteland for AI growth
The initiative forms part of Prime Minister Sir Keir Starmer’s wider AI “action plan,” which seeks to harness the potential of AI to modernise the UK’s public services and drive economic growth. Central to this strategy is the creation of a network of “growth zones” across the country, providing essential infrastructure such as data centres and enhanced energy grid access to support the burgeoning AI sector.
The Government intends to establish these zones in areas with existing power connections or clear pathways to securing them, prioritising deindustrialised regions that offer suitable land and infrastructure for redevelopment.
Addressing American investors at Nvidia Conference
Mr Kyle is expected to provide further details about these proposed sites when he addresses business leaders and developers at the Nvidia Annual Conference on Thursday.
“In empty factories and abandoned mines, in derelict sites and unused power supplies, I see the places where we can begin to build a new economic model,” the Technology Secretary will say.
“A model completely rewired around the immense power of artificial intelligence. Where, faced with that power, the state is neither a blocker nor a shirker – but an agile, proactive partner.”
The UK’s commitment to AI development
In his speech, Mr Kyle is expected to emphasise that governments have a responsibility to support AI initiatives, “not through diktat or directive, but through partnership.”
His remarks reflect the Government’s determination to position the UK as a global leader in AI innovation while ensuring that local communities benefit from the economic opportunities the sector can bring.
According to the Department for Science, Innovation and Technology (DSIT), the UK’s AI sector is currently valued at $92 billion (£71 billion) and is projected to exceed $1 trillion by 2035.
Meetings with tech giants
As part of his visit, Mr Kyle will hold discussions with key figures from leading AI and technology firms, including OpenAI, Anthropic, Nvidia, and Vantage.
These meetings are expected to focus on securing investment for the UK’s AI ecosystem, fostering transatlantic collaborations, and ensuring that Britain remains at the forefront of global AI advancements.
The UK has already taken significant steps in AI development, with several government-backed research projects and private sector initiatives helping to drive innovation. However, concerns remain about infrastructure challenges, particularly around energy supply and data processing capabilities—issues that the proposed growth zones aim to address.
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Transforming the UK’s economic landscape
The creation of AI growth zones aligns with Labour’s broader economic vision of rebuilding Britain’s industrial heartlands through high-tech industries. By repurposing underutilised land and infrastructure, the Government hopes to create thousands of new jobs while reducing regional economic disparities.
AI is seen as a key driver of Britain’s future economic strategy, with the potential to revolutionise industries ranging from healthcare and finance to manufacturing and transportation.
A race for global AI supremacy
The UK’s AI ambitions come at a time of increasing global competition in the sector. The United States, China, and the European Union are all investing heavily in AI, with nations vying to attract top talent, secure cutting-edge research, and build the infrastructure necessary to sustain AI-driven economies.
By courting American investors and establishing strong partnerships with leading AI firms, Mr Kyle hopes to solidify the UK’s position as a world leader in the field.
The road ahead
While the UK Government’s AI action plan is still in its early stages, the proposals outlined by Peter Kyle mark a decisive step towards transforming Britain’s economic landscape.
If successfully implemented, these AI growth zones could revitalise former industrial areas, unlock billions in investment, and ensure that Britain remains a global powerhouse in AI innovation.
As discussions unfold in San Jose, all eyes will be on how the international tech community responds to the UK’s vision for the future of artificial intelligence.
