South Wales Announced as Home to Second Welsh AI Growth Zone

A new AI Growth Zone for South Wales has been unveiled, with 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.

David Howson, President of Vantage Data Centers, EMEA, said:

“This is a welcome signal of the government’s commitment to South Wales and strengthens what is already one of the most exciting AI development opportunities in the UK. As a company at the forefront of global AI infrastructure, we see world-class potential here in South Wales.

 

“The breadth of talent, connectivity and local support have all shaped Vantage’s investment here. We look forward to building on those strengths in partnership with the UK and Welsh Governments. “

Hugh Milward, Vice President, External Affairs, Microsoft UK said:

“This is fantastic news for Wales and for all organisations connected to its growing digital ecosystem. We’re proud to be investing in South Wales and playing our part to deliver this new AI Growth Zone, helping to build the AI economy of the future and deliver benefits for communities across the region.”

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.

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 UK’s place as a global leader in AI.”

The UK Government says it will act as a “first customer” for promising UK start-ups who are building high-quality AI hardware products but currently struggle to get off the ground without investment. The new “advance market commitment” is backed up by up to £100 million of government support to give British startups the opportunity for a competitive edge and to win customers in a multibillion-dollar global market.

Venture capitalist James Wise will chair the Sovereign AI Unit, backed by almost £500 million in investment to help build and scale AI capabilities in the UK. The unit will bring together government, industry and investors, to become the go-to fund for high potential start-ups and scale-ups in the UK.

Meanwhile new AI Ambassadors have been announced, including Nobel prize winning British MIT economist and former Chief Economist of the IMF Simon Johnson. Monzo Co-founder and Y Combinator General Partner Tom Blomfield will champion British start-ups to scale up and attracting talent and investment. Google DeepMind VP of Research Raia Hadsell will champion the UK’s place at the forefront of AI innovation and security.

The UK Government will offer more free compute to British researchers and British startups so they can train new AI models and deliver scientific breakthroughs.