North East AI Growth Zone taskforce launched to accelerate jobs, skills and growth

Elected Mayor Karen Clarke, with Combined Authority and Government representatives at the launch of the AI growth zone.

Thousands of jobs are set to be unlocked as a powerhouse coalition including British AI firm NScale, local universities and leading skills providers join forces to supercharge planning, new opportunities and the build of the North East’s new AI Growth Zone. 

With new roles expected including in construction through to energy to cutting-edge AI - the new taskforce will work hand-in-hand with local organisations to create training and apprenticeship routes that ensure the benefits are felt across the region. 

With members spanning the AI sector - from data centre builders to local training providers and world-class researchers - the taskforce kicks off work today. Technology Secretary Liz Kendall and North East Mayor Kim McGuinness will later today bring together businesses to focus minds on getting sites in Cambois near Blyth and Cobalt Park up and running fast.

Spades are expected in the ground within weeks, with the taskforce laser-focused on unblocking planning issues, securing further investment and ensuring energy access. 

Today, the Technology Secretary met apprentices already working at Cobalt Park to hear first-hand how the AI Growth Zone is creating opportunities and boosting growth as part of the government’s Plan for Change.

Technology Secretary Liz Kendall said: 

“The North East is once again leading the charge - this time in the AI revolution.  

“We’re backing local talent with the skills and training they need to thrive in the jobs of tomorrow.

 “From laying the physical foundations and building data centres to launching careers in AI, this Growth Zone is about creating real opportunities for people right across the region.”

Karen Clark, North Tyneside Council's Elected Mayor said, 

“These are dynamic times as AI opens up possibilities for economic growth and innovation across North Tyneside and the wider North East. This investment opens the door to thousands of high-quality jobs for our residents.

“The data centre campus at Cobalt is a crucial site in the North East AI Growth Zone. As a local authority, we’re committed to unlocking its full potential, using our strong regional partnerships across government, business, and the education and skills sector.”

North East Mayor Kim McGuinness said:

“We know AI can be transformational for people and the local economy. This investment will mean thousands of jobs for local people and the North East leading innovations in tech.  

“Now we need to work with businesses to develop the talent right here, and make sure the benefits of AI reach the people of the region. We’ve already mobilised a taskforce of business leaders, industry experts and skills providers to deliver exactly that.

“I want kids in school here today to see their place in an AI-driven future, and this is how we make sure it provides a new future for our young people.” 

The Taskforce will initially prioritise getting the AI Growth Zone up and running, before maximising the impact of AI for the local economy, jobs and opportunities for young people.

The North East – birthplace of the industrial revolution and home to a wealth of leading universities including Newcastle, Durham, Sunderland and Northumbria – is set to lead the UK’s AI revolution. 

The UK Government has designated the region as an AI Growth Zone, unlocking up to £30 billion in investment to transform its tech landscape, create long-term AI careers, and boost public services like healthcare. 

Sage Chief of Staff Ben Aung said:

“Today’s visit is a vote of confidence in the North East—our new AI Growth Zone puts the region’s innovation on the map and, with early careers in focus, will inspire and upskill the next generation of AI talent.

“To turn that potential into tangible results, businesses and our colleges and universities must work more closely than ever—aligning curricula with real roles, sharing expertise and opening pathways into industry.

“From our global Cobalt Park HQ, Sage is turning that momentum into practical, trusted AI for small businesses—freeing people from time-sapping admin so the whole region can be more productive and prosper.”

With access to the UK’s largest source of low-carbon energy, the North East is primed for sustainable AI deployment. 

Blackstone has already committed £10 billion to the Cambois near Blyth site, with the new Growth Zone status further boosting opportunities for an extra £20 billion from future partners.

Meanwhile, Nscale, OpenAI and NVIDIA are launching Stargate UK – a sovereign AI infrastructure platform. Phase one will see 8,000 GPUs deployed early next year, scaling to 31,000 GPUs over time, with key sites including Cobalt Park in the North East. 

This partnership will supercharge AI adoption, transform public services, and drive economic growth – supporting the Government’s Plan for Change. 

It follows a landmark UK-US deal on AI, Quantum and Nuclear technologies, announced by the Prime Minister and President Trump, to boost jobs and innovation.  

As part of this, X-Energy and Centrica announced plans to help power the UK’s clean energy future – starting with up to 12 advanced modular reactors in Hartlepool. The project could supply power to up to 1.5 million homes, generate £12 billion in value for the North East and create around 2,500 high-quality jobs in another major boost for the area.