A new AI Growth Zone is set to be created in the North East and could generate more than 5,000 new jobs and attract up to £30 billion in private investment.
The move will build on the region's work to upskill local residents in AI and create opportunities for people to take up long term careers in the sector.
The region has an ambition to become one of the largest data centre hubs anywhere in Europe.
By boosting the rollout of AI in the area, it is hoped the new Growth Zone will create thousands of jobs across the region, including in construction through to data engineering, AI research and development, and AI safety and put newly trained AI experts from local universities including Newcastle University, Durham University, Sunderland University and Northumbria University, within touching distance of the UK’s newest emerging tech hub.
It is also intended to drive local economic growth and increase productivity of businesses in sectors including manufacturing, healthcare, energy and finance by enabling them to more easily adopt AI and compete globally and see new breakthroughs in our understanding of drug discovery, climate change and safer technology.
Technology secretary Liz Kendall said: "This is great news for the North East and the people who live there. This investment will create thousands of high-quality jobs, boost skills and inspire the creation of new firms.
"The North East’s industrial legacy is evolving into a future of innovation - unlocking a potential £30 billion and powering communities with the skills and careers to lead the UK’s next industrial revolution."
North East Mayor Kim McGuinness said: "Today’s announcement of an AI Growth Zone places the North East at the forefront of the next technology revolution and will lead to billions of pounds of new investment in our region, thousands of better jobs and new opportunities for local people.
"I want kids in school here today to see their place in an AI-driven future. We know AI will be transformative for our economy, but this is how we make sure it also provides a new future for our young people, by working with business to create training and apprenticeship routes into this fast growing sector on a whole new scale.
"Our region boasts computing power that are among the best in Europe with Cobalt Park Data Centres already established in Wallsend and the QTS Cambois Data Centre Campus in Blyth due to open in 2028. We have the skills and brainpower in our tech sector and universities, and now we can match that with the new investment this Growth Zone will bring to the North East from around the world."
