The UK government has designated a major site in South Wales as an AI Growth Zone, enabling large-scale data center development and inviting private companies to construct new facilities.
The new AI Growth Zone forms part of a national push to streamline data center deployment by offering quicker planning pathways and reliable power access, two persistent constraints for operators seeking to scale capacity in the UK. With this designation, the government is positioning South Wales for substantial enterprise investment, long-term construction activity, and enhanced digital infrastructure availability.
This latest designation brings the total number of Growth Zones to four. Earlier in the month, the UK confirmed a similar zone in North Wales at the Anglesey Freeport. The South Wales zone is expected to attract £10 billion ($13.1bn) of private-sector investment from companies including Vantage Data Centers and Microsoft, covering land that incorporates the former Ford Bridgend Engine Plant.
Vantage Data Centers purchased the Bridgend factory in 2024 and set out plans for a multi-building development. Consultation documents released in January referenced ten buildings and three substations to be delivered over a 10-15 year build-out, with initial construction targeted for 2026. The UK Department of Science, Innovation and Technology (DSIT) said the new zone spans multiple sites along the M4 corridor, stretching from Newport to Bridgend, and is expected to bring more than 1GW of operational capacity online by the early 2030s.
The department is also seeking an investor to support the South Wales program. Much of the activity referenced in the announcement aligns with existing projects already underway, including Vantage’s operations in Newport. Vantage gained that site in 2020 through its acquisition of Next Generation Data, and Newport is now formally included within the AI Growth Zone. The firm is separately advancing a data center campus at the Ffordd Bro Tathan business park in St. Athan, located west of Cardiff and south of Bridgend.
At this stage, it is unclear whether the announcement introduces any additional data center builds beyond the schemes already disclosed. However, the government reiterated that it anticipates the zone will generate at least 5,000 jobs and draw £10 billion ($13bn) in cumulative investment.
“Our goal is to see British chips deployed alongside established vendors,” the government said.
Alongside the South Wales designation, the UK committed up to £100 million ($131m) for AI hardware purchases from domestic startups. The government also confirmed that venture capitalist James Wise will chair the Sovereign AI Unit, overseeing “almost” £500 million ($654m) in investment for UK-based AI companies. In parallel, the previously announced plan to provide up to £250 million ($327m) in compute access for British researchers has now officially launched.
With multiple projects already advancing and government-backed initiatives now live, the South Wales AI Growth Zone is set to form a significant node in the UK’s next phase of data center and AI infrastructure expansion.