York and North Yorkshire are setting their sights on becoming one of the UK’s AI Growth Zones, a strategic initiative aimed at boosting the digital economy and unlocking an estimated £85 billion worth of regional expansion. Spearheaded by the York and North Yorkshire Combined Authority in collaboration with North Yorkshire Council, Drax Power Station, the University of York, and various public and private sector partners, the proposal outlines a path for the region to significantly enhance its economic landscape.

Mayor of York and North Yorkshire, David Skaith, emphasised the region’s rich history of innovation and highlighted the bid as a bold move aligning with government priorities. “Our submission to government is ambitious and backed by a strong coalition of regional partners,” he stated. The proposal promises to create a pathway towards establishing the world’s first carbon-negative data centre as part of an AI and Clean Energy Campus, which could serve as a catalyst for innovation and economic development across multiple sectors.

This initiative falls under the UK government’s broader AI Growth Zones programme, which encourages local authorities to present proposals for designated areas where AI infrastructure can thrive. The programme aims to rejuvenate communities, attract investment, and create thousands of jobs, particularly in regions previously reliant on traditional industries. According to a government announcement, such areas will receive support for developing AI-enabled data centres and related infrastructure, with a keen focus on sustainability.

In support of this initiative, Drax development director Richard Gwilliam highlighted the potential for significant economic growth. He noted that establishing an AI Growth Zone at Drax would not only protect up to 7,000 jobs but could also foster a vibrant local innovation ecosystem. North Yorkshire Council’s leader, Councillor Carl Les, echoed these sentiments, asserting that this opportunity could diversify and strengthen the regional economy while promoting environmental sustainability.

Further enhancing the region’s credentials, emerging partnerships, such as one with Data Stream, aim to transform local businesses into data-driven entities. This collaboration will provide tailored workshops focusing on data strategies and infrastructure improvement, essential components for fostering innovation. Initiatives like the YorkshireX AI Adoption Programme, set to start in February, will also play a pivotal role in bridging the AI adoption gap among businesses, offering essential tools and resources to promote engagement with AI technologies.

The region’s push for AI development is supported by its strong educational framework, which includes institutions like the University of York. Vice-Chancellor Charlie Jeffery reaffirmed the institution’s commitment to responsible AI innovation, signalling that regional advancements in AI will occur alongside rigorous research into safety and ethics.

An announcement regarding the successful bids for AI Growth Zones is expected following the Comprehensive Spending Review scheduled for 11 June. As the region prepares for this pivotal moment, stakeholders remain optimistic about the future economic landscape of York and North Yorkshire, which looks increasingly positioned to lead in AI and digital transformation.

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Source: Noah Wire Services