Teesside possible second UK AI Growth Zone

UPDATED 13th August 2025:

Redcar and Cleveland Council in the north east of England has approved the development of a 500,000 sqm data centre on a former industrial site close to the River Tees.

Designs by POD Architects of Newcastle include a campus-based approach with the site designed around offices and supporting facilities. The plan shows office buildings arranged around a green space including tree planting.

The data centre facilities are arranged into two zones: A public-facing cluster and a secure ‘back of house’ area for critical data centre infrastructure, including emergency generators. The site has been designed for flexibility and potential future expansion as operational needs evolve.

The planning announcement comes as the UK government is reported to be considering Teesside as its second AI Growth Zone. The new data centre would be a strong argument in favour of its selection.

When the announcement about the Growth Zones was made earlier in 2025, Tees Valley Mayor Ben Houchen was quick to suggest that the area had strong credentials. He said: “The region has everything we need to host an AI Growth Zone”.

The UK government is accelerating efforts to build the infrastructure needed to support AI growth. AI Growth Zones will unlock investment in AI-enabled data centres and support infrastructure by improving access to power and providing planning support.

This will help drive innovation, create high-skilled jobs, and strengthen the UK’s position as a leader in AI. The first named AI Growth Zone was Culhman in Oxfordshire, which already hosts the UK Atomic Energy Authority.