York & North Yorkshire Bid for AI Growth Zone with £85B Economic Boost

York and North Yorkshire have officially submitted a bid to become one of five artificial intelligence (AI) technology "growth zones" in the UK, as reported by BBC. In collaboration with key partners such as North Yorkshire Combined Authority, North Yorkshire Council, Drax Power Station, University of York, and other organizations, the bid outlines a bold vision for the region, estimating that AI-focused investments could generate £85 billion for the local economy.
David Skaith, Mayor of York and North Yorkshire, called the bid a “transformational opportunity” for the region, emphasizing the strategic potential of AI to revolutionize industries and accelerate economic growth. He said:
He added, “It is bold and credible plan that could transform the economic future of Yorkshire and the Humber.
AI Growth Zone Potential
The bid aims to make the region an AI Growth Zone, targeting 15% of the UK’s AI economic growth by 2035. It focuses on sectors like agriculture, life sciences, clean energy, rail, and creative industries. A key project is a new AI and Clean Energy campus at Drax Power Station, exploring carbon-negative solutions like BECCS.
Job Creation and Regional Impact
According to BBC, the bid anticipates that becoming an AI Growth Zone would not only boost innovation but also protect 7,000 jobs, including 3,500 jobs in the north of England. According to Richard Gwilliam, Drax’s Development Director, this initiative would “catalyse thousands of new jobs” and foster regional growth.
Mayor Skaith highlighted that the region is “shovel ready,” underscoring that a successful bid would create significant opportunities for skills development, job creation, and digital inclusion, particularly in underserved communities.
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Next Steps and Government Announcement
The decision on the AI Growth Zones is expected to be announced on 11 June as part of the UK government’s Comprehensive Spending Review, which will outline its investment priorities for the next phase of economic growth and innovation.
If successful, York and North Yorkshire will become a leading AI and clean energy hub, driving the UK’s digital transformation while contributing significantly to the country’s climate goals.