Two new Al growth zones to open in Newcastle

New AI growth zones are set to generate thousands of jobs and billions in investment in the North-East.

Caitlin Parks
21st October 2025
Image source: Pixabay, Igor Omilaev
The UK government has announced on the 17th of September the creation of a North East AI growth Taskforce dedicated to planning and building new AI centres in Blyth in Northumberland and Cobalt in North Tyneside.

The Taskforce - announced by The Department for Science, Innovation, and Technology (DSIT) - also includes plans for new “training and apprenticeship routes” which aim to make the project as accessible to the region as possible. It falls under the government’s Plan for Change - with the intention of creating “real opportunities for people right across the region”, according to Technology Secretary Liz Kendall, as the Taskforce will purportedly be prioritizing improving the local economy and job opportunities for young people.

Newcastle University is involved in the project through its developing AI upskilling curriculum and the training of data scientists, and according to Vice Chancellor Chris Day, “This investment […] will be vital in upskilling the local workforce that’ll benefit from new jobs”.

The plans already involve a £10 billion investment being committed to the Data Centre in Blyth, with the Growth Zone status being given to the centre supposedly resulting in “opportunities for an extra £20 billion from future partners”, alongside nearly 4,000 new jobs being created for the project.

"The plans already involve a £10 billion investment being committed to the Data Centre in Blyth..."

The centre in Cobalt Park has OpenAI, Nvidia, and Nscale’s involvement and is to be a part of the Stargate UK infrastructure that is projected to produce thousands of NVIDIA AI GPUs yearly. Cobalt Parks director, Guy Marsden, hails the endeavour as “a landmark milestone for our region” as it’ll be a key part of the Stargate UK scheme.

North East Mayor Kim McGuinness also welcomes the plans, saying “this is how we make sure [AI] provides a new future for our young people”.

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