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Wales is getting a second AI growth zone

The zone is South Wales will support investment in data centres from Bridgend to Newport

Liz Kendall.(Image: PA Wire/PA Images)

Wales is getting a second artificial intelligence (AI) growth zone aimed at accelerating the delivery of new data centres and supporting required skills.

Following confirmation of an AI growth zone for North Wales, the º£½ÇÊÓÆµ Government has announced a second in South Wales that will cover a number of data centre and planned data centre sites, including the former Bridgend Ford engine plant where US data centre company Vantage Data Centers is taking forward investment, worth billions of pounds, to build a campus of 10 data centres.

It also includes Vantage’s data centre project, for which it was recently granted planning consent, at the Welsh Government-owned Bro Tathan business park in the Vale of Glamorgan. The South Wales zone also covers Microsoft's data centre project in Newport.

The investment in data centres in South Wales, although the majority will be constructed related, is forecast to create 5,000 jobs over the next decade.

As part of a network of º£½ÇÊÓÆµ-wide AI growth zones will be benefit from

  • Removal from speculative demand in the grid connections queue – and create mechanisms to reallocate the released capacity and reserve future capacity, for AI growth zones, amongst other strategically important projects;
  • Working with regulator Ofgem to enable viable options for AI growth zone developers to build their own high voltage grid infrastructure; and
  • supporting zones through the Connections Accelerator Service

Each zone will receive £5m in government support to boost business adoption and skills while tech firms behind the projects, like Vantage Data Centers, have committed to working with universities across South Wales to boost skills in AI.

Secretary of State for Science, Innovation, and Technology, Liz Kendall said: “The backing by international investors today is a vote of confidence in the º£½ÇÊÓÆµ – and we’re determined to do even more to ensure we are backing British businesses, workers and researchers to benefit from the opportunities AI brings. This is about bringing jobs, opportunities and hope to the people and places that need it most, delivering on our promise of change.”

Secretary of State for Wales Jo Stevens said: “Wales will now have two brand-new AI growth zones bringing thousands of jobs to both North and South Wales and driving economic growth across the country. South Wales is already the home of a growing tech industry and this major investment in the region will help cement the º£½ÇÊÓÆµ’s place as a global leader in AI.”