UK Government Considers Teesside for Second AI Data Center Hub
The UK government is reportedly planning a major data center campus in northeast England, with Teesside emerging as a leading contender. A planning application for a vast data center spanning 500,000 sqm (5.38 million sq ft) was recently submitted by Teesworks Ltd, the public-private partnership managing the redevelopment of the former steelworks site near Middlesbrough.
This site, described as the largest brownfield development in Europe, is being considered for the government's second AI Growth Zone. Plans aim to establish what could become the largest data center in Europe. The Department for Science, Innovation and Technology has been closely involved in discussions with a major, though unnamed, investor.
Background of Teesside Site and Development Plans
Teesside Steelworks has a long industrial history dating back to the 1870s, once hosting 91 blast furnaces across a 10-mile radius. While some steel production continues, much of the 4,500-acre brownfield land is being transformed into an industrial zone and freeport under the Teesworks project.
However, the proposed data center development may face challenges, particularly with plans for a blue hydrogen and carbon capture facility in the same region. The Energy Secretary is expected to decide soon on BP’s hydrogen plant application. This situation highlights tensions between the government’s net-zero ambitions and its push to attract AI and data center investments as part of broader economic growth.
Competition Among UK Regions to Host AI Growth Zones
The government requires at least 6GW of AI-capable data center capacity in the UK by 2030 to maintain competitiveness. This is a threefold increase over current capacity. Five AI Growth Zones are planned, each designed to handle at least 500MW of demand, with one zone expected to surpass 1GW by 2030.
The first AI Growth Zone is already underway in Culham, Oxfordshire, home to the UK Atomic Energy Authority. Scotland and Wales are confirmed to host zones but have yet to announce specific locations.
- North Ayrshire’s Irvine and Dumfries and Galloway have submitted bids to host AI Growth Zones.
- Glasgow is also in contention, potentially with backing from the Prime Minister.
- The University of York has proposed a data center and growth zone at its planned AI and Clean Energy Campus at Drax Power Station.
- North Lincolnshire Council and South Yorkshire Mayoral Combined Authority (SYMCA) have pitched Doncaster.
- Somerset’s MP is campaigning for an AI hub in the region.
- UK data center firm Kao is promoting the northwest, particularly Manchester, as a potential site.
- Liverpool has also been suggested as a viable AI hub location.
The wide-ranging bids indicate strong regional interest in contributing to the UK’s AI infrastructure expansion and economic development.
Implications for Government Planning and Policy
For government officials, the development of AI Growth Zones is a strategic priority, balancing infrastructure growth with environmental goals. The Teesside project exemplifies this challenge, where industrial regeneration, energy policy, and digital infrastructure intersect.
Ensuring that AI and data center initiatives align with broader sustainability commitments will be critical. Decisions made in the coming months, especially regarding energy projects like the BP hydrogen plant, will influence how these priorities are managed.
To explore practical guidance on AI-related training and development relevant to government roles, visit Complete AI Training.
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