The creation of an AI Growth Zone in South Wales will bring opportunities for the business community and the wider economy, business leaders have said.
The AI Growth Zone for South Wales will have sites stretching along the M4 corridor from Newport to Bridgend. An investment of £10 billion will lead to at least 5,000 jobs, says the UK Government, from the construction phases through to careers in AI research and development. It added that the zone has the potential to harness more than 1GW by early 2030s.
The area will also receive up to £5 million in government support to boost business adoption and skills in AI Growth Zones. Tech firms behind the site, including Vantage Data Centers, are committed to working with universities across South Wales to boost skills in AI, the UK Government said.
Microsoft is also working with government to deliver the zone, which the UK Government said would include the former Ford Bridgend Engine Plant.
Louise Harris, co-founder and CEO of Tramshed Tech, said:
“The announcement of South Wales as the UK’s second AI Growth Zone marks an incredible moment for Wales and for the wider UK innovation ecosystem. This level of transformational investment will reshape communities, accelerate entrepreneurship, and ensure that the next generation of talent is built, supported, and empowered to thrive.
“We’re already seeing strong momentum across Welsh frontier tech and this commitment to AI, skills and infrastructure will supercharge the work already happening on the ground – from startups and scale-ups to research, training, and community programmes.
“Initiatives like Cardiff Capital Region’s ‘Venture into Innovation’ and AI. Enable are already laying the foundations for this opportunity to be a success, ensuring that Wales is ready to lead in the industries of the future.
“It’s brilliant to see ambitious AI companies choosing the UK and Wales specifically as their home for growth. This announcement is a huge step forward for our founders, our young people, and the future industries we are building together.”
Phil Jones, Chief Executive of Business in Focus, said:
“Entrepreneurs and SMEs across South Wales and beyond will welcome the announcement of this new AI corridor, not least for the opportunity it presents to upskill and turn our curiosity of AI into the confidence to apply it to business growth. Business in Focus looks forward to supporting SMEs on this exciting journey.”
Head of FSB Wales, Joshua Miles, said:
“This announcement is welcome news, poised to create many jobs and further placing Wales at the heart of the UK's AI ambitions. Our members stand to gain from the skills training and support that this announcement will bring about, enabling them to drive efficiencies, technical advancements and business growth.
“We urge all partners involved to ensure local businesses across South Wales are fully involved in any procurement and supply chain opportunities linked to this project, to benefit, not only local economies, but the wider Welsh economy too.”
An AI Growth Zone for North Wales has already been announced, with the site set to straddle the Menai Strait, with a base at Prosperity Parc on Anglesey and another at Trawsfynydd in Gwynedd. That zone is expected to create more than 3,400 new jobs.
