Authorities confirms North East as location of second AI progress zone

The federal government has confirmed that two websites within the North East would be the location of the UK’s second synthetic intelligence (AI) progress zone, with one of many developments additionally set to be the launch website for OpenAI’s Stargate UK endeavour.

Greater than 200 expressions of curiosity had been directed to the federal government in response to its name for native authorities and different associated events to bid to turn into AI progress zones again in February 2025.

At this level, the federal government had already confirmed the primary AI progress zone can be situated in Culham, Oxfordshire, on the headquarters of the UK Atomic Power Authority (UKAEA).

It initially acknowledged that profitable bidders can be notified by the summer time of 2025 if that they had been profitable, with this AI progress zone within the North East the primary of the brand new cohort to be introduced to date.    

The zone might be made up of two distinct websites close to to Newcastle. One at Cobalt Park, which is billed as being the UK’s largest workplace park, and one other in Blyth.

“The AI progress zone will generate progress alternatives throughout the area, capitalising on entry to the UK’s largest supply of low carbon and renewable vitality, world-class universities and the area’s rising tech ecosystem in areas together with superior manufacturing, robotics and area,” mentioned the Division for Science, Innovation and Expertise (DSIT), in an announcement. 

It’s understood that Cobalt Park is already dwelling to 3 carrier-neutral colocation datacentres, which profit from a devoted vitality provide from the Nationwide Grid.

In a separate announcement, OpenAI – the corporate behind the favored AI chatbot ChatGPT – confirmed that the AI progress zone at Cobalt Park might be one in all a number of UK websites that may host compute capability for its Stargate UK enterprise.

Stargate UK is a three way partnership between Open AI, NVIDIA and Nscale that’s geared in direction of constructing out the UK’s sovereign compute capability for the only function of internet hosting AI fashions. 

Information of the enterprise follows the announcement in July 2025 that OpenAI had signed a memorandum of understanding (MoU) with the federal government, centered partly on exploring alternatives to construct out the nation’s AI infrastructure.

OpenAI CEO Sam Altman mentioned the UK has an extended historical past of pioneering the usage of AI applied sciences, which Stargate UK will construct upon.

“Stargate UK builds on this basis to assist speed up scientific breakthroughs, enhance productiveness, and drive financial progress,” mentioned Altman. “This partnership displays our shared imaginative and prescient that with the proper infrastructure in place, AI can increase alternative for individuals and companies throughout the UK.”

In the meantime, funding administration firm Blackstone has stumped up £10bn in funding for the Blyth aspect of the event already, and an extra £20bn is now anticipated to be poured into the challenge from further companions now the AI progress zone designation is confirmed. 

Newly appointed expertise secretary Liz Kendall mentioned that the choice to create an AI progress zone within the North East of England will give the area an financial increase.    

“This funding will create 1000’s of high-quality jobs, increase abilities and encourage the creation of recent corporations,” she mentioned. “The North East’s industrial legacy is evolving right into a way forward for innovation – unlocking a possible £30bn and powering communities with the abilities and careers to steer the UK’s subsequent industrial revolution.”