AI GROWTH ZONES Positioning the United Kingdom’s AI strategy within a sustainable innovation framework

Kim Grieveson

Kim is a Principal in the Place team at Avison Young. She has a national remit focused on unlocking complex development and regeneration opportunities which help to drive economic growth. Kim is currently working with several public and private sector clients within the innovation and tech space and is conscious of the need to deliver on the government’s bold growth ambitions in a measured and responsible way.

Kim believes “If properly implemented, AI Growth Zones represent a generational opportunity to transform the UK’s innovation infrastructure in a manner that is technologically advanced, economically inclusive, and environmentally sustainable.” 

The opportunity 

The United Kingdom’s ambition to establish global leadership in artificial intelligence (AI) has evolved beyond rhetoric. It is now underpinned by substantial public investment and a growing policy infrastructure. The designation of Culham Campus, Abingdon, Oxfordshire as the UK’s first AI Growth Zone represents a significant milestone in this trajectory, reflecting a concerted governmental commitment to accelerate AI capabilities at a national scale. 

The scale of the financial commitment is notable: £600m has been allocated specifically to AI Growth Zones, complemented by additional funding commitments including £1bn to expand national AI compute capacity, £500m towards the establishment of a sovereign AI capability, and £750m for the development of a new supercomputer in Edinburgh. This level of investment is both necessary and timely. However, financial capital alone will not ensure the long-term viability or ethical integrity of the UK’s AI ecosystem. 

It is imperative that the development of AI Growth Zones be leveraged not only as platforms for technological advancement, but also as catalysts for sustainable economic regeneration. This initiative presents an opportunity to align the UK’s innovation agenda with its environmental and social objectives - most notably its statutory net zero commitments and the imperative to build climate-resilient infrastructure. 

Integrating sustainability into the National Innovation agenda 

AI Growth Zones will inevitably require substantial energy to support compute-intensive operations and data centre infrastructure. If this energy demand is not met through low-carbon, scalable, and secure sources, the UK risks establishing a technologically advanced but environmentally unsustainable foundation for its AI future. 

It is essential that energy infrastructure planning be integrated from the outset of development. Net zero targets, energy resilience, and innovation cannot exist in isolation: they must be pursued through a unified framework. This includes designing AI zones that are powered by renewable energy, incorporate energy-efficient architecture, and contribute positively to the broader ecological context in which they are embedded. 

In doing so, the UK has an opportunity to demonstrate global leadership, not only in AI research and development, but also in the integration of digital innovation with environmental responsibility. 

Promoting regional regeneration through sustainable AI infrastructure 

The strategic deployment of AI Growth Zones should not reinforce existing geographic inequalities. Rather, it should facilitate the decentralisation of the innovation economy and ensure that regions historically underserved by technological investment benefit equitably. 

Culham Campus offers a compelling prototype. As the first designated AI Growth Zone, it exemplifies how such a hub can be both strategically located and optimised for high-performance computing demands. Its proximity to leading research institutions and clean energy assets, such as the UK Atomic Energy Authority, offers an opportunity to co-locate AI innovation with sustainable energy development. 

Nevertheless, national impact requires replication beyond the South East. The North West of England, for example, demonstrates clear potential. Significant private-sector investment is already underway: Kao Data is developing a £350m AI-ready data centre in Stockport, while Kyndryl has announced the creation of 1,000 new technology roles in Liverpool. These investments signal market confidence in the region’s long-term viability as a technology and data economy hub. 

Importantly, these developments must be framed within a sustainable growth model that balances economic opportunity with environmental constraints. 

Learning from past regeneration models 

The UK has previously implemented economic regeneration strategies—such as Enterprise Zones—that failed to deliver enduring impact. These initiatives often lacked integration with long-term planning and local needs. AI Growth Zones must not repeat these errors. 

A successful model will require: 

• Deliberate planning that aligns national ambition with regional strengths 

• Infrastructure that is climate-resilient and future-ready 

• Skills pipelines co-designed with industry to support both digital and green economies 

• And, critically, integration into the social and physical fabric of local communities, avoiding the creation of isolated “tech enclaves”. 

Furthermore, the educational and training dimensions of these zones must be prioritised. AI Growth Zones should be connected to broader government efforts to enhance technical and vocational education, particularly in low-carbon industries. In doing so, they can become instruments for inclusive growth, enabling local populations actively to participate in and benefit from the transition to a sustainable digital economy. 

A national imperative for climate-conscious innovation 

If properly implemented, AI Growth Zones represent a generational opportunity to transform the UK’s innovation infrastructure in a manner that is technologically advanced, economically inclusive, and environmentally sustainable. 

Their success will be defined not solely by the scale of data processed or the number of patents filed, but by their ability to: 

• Contribute to national net zero objectives 

• Support regional resilience and economic renewal 

• And serve as international exemplars of sustainable technological development. 

As such, future growth zones must be governed by a strategic framework that incorporates environmental impact assessments, community engagement mechanisms, and rigorous sustainability benchmarks from the outset. 

Artificial intelligence holds immense potential for economic transformation. However, without a concurrent commitment to environmental sustainability and social inclusion, this potential risks being undermined. The UK must seize this opportunity to lead not only in AI, but in demonstrating how advanced technologies can be developed in harmony with long-term planetary health and community wellbeing. 

The task ahead is clear: to build a smarter, greener innovation economy, powered not only by computation, but by purpose.