A Guardian investigation into the UK government's plans for AI growth zones has found that some of these proposals are, according to one source, at best unclear and at worst 'complete bunk'. The zones are intended to support the construction of massive AI datacentre complexes of 500MW or greater, potentially larger than any currently operating in the UK.
What Are AI Growth Zones and What Is Required to Build One?
AI growth zones are areas where the government aims to encourage the building of AI datacentres, merging goals of creating jobs in former industrial areas and maintaining Britain's competitive edge in AI. Five such zones have been announced, including one in Lanarkshire, east of Glasgow, and another in North Tyneside, near Newcastle, the site of the Stargate UK project.
Local authorities and companies were to apply to become AI growth zones, demonstrating the ability to build 500MW AI datacentres by 2030, with bonus points for showing investment and job creation potential.
Are the Plans to Build AI Growth Zones Feasible?
In the case of Lanarkshire, the most recently announced zone, the answer is no. The facility was supposed to be powered by on-site renewable energy, but internal communications and responses to the Guardian reveal that the site will simply connect to the grid. The developer, DataVita, described plans to build the UK's largest onshore windfarm in four years, but the Guardian found that DataVita currently has roughly a tenth of the land needed for such a project.
What Happened with Stargate UK?
The Guardian also examined the Stargate UK zone in North Tyneside, from which OpenAI recently withdrew. Plans appeared to come together hastily before Donald Trump's visit to the UK last year, driven by political goals. OpenAI and Nscale, the supposed builders, were not involved in the application process, raising questions about the plans' feasibility. Local authorities suggested that Stargate UK lacked necessary grid capacity and infrastructure.
What About the Money and Jobs?
Job numbers for Lanarkshire appear inflated, based on industry estimates for another datacentre and then increased due to the site's size. The government claims 3,400 jobs, but a Scottish charity suggests the real figure will be hundreds of times smaller. The £543m community fund for Lanarkshire is not in place; it would come from DataVita's future revenues. The £20bn potential investment figure for Stargate UK appears circular, as the government states the site will have that amount because it requires it for construction.
What Does This Mean for the UK’s AI Ambitions?
Electricity is a critical factor for AI infrastructure. Datacentres are standing empty in California due to grid connection issues, and Europe is addressing power in its AI law. In Britain, grid connections face eight- to ten-year waits, and expedited connections for datacentres could cut queues ahead of houses and hospitals. The government's apparent oversight of this central issue is not a positive sign for its AI development plans.
