The AI Growth Zone will aim to create one of Europe’s largest AI development hubs consisting of sites such as in Blyth and Cobalt Park near Newcastle, creating more than 5,000 new jobs in the area.

The zone will look to create growth opportunities across the region, with Blackstone having committed £10bn to the Blyth site, and hopes for further partners to provide the additional £20bn funding.

British firm Nscale has partnered with technology giants OpenAI and Nvidia to establish Stargate UK to help deliver new AI infrastructure in the UK, including developing a platform to use OpenAI’s technology on sovereign infrastructure. 

The first phase will see OpenAI take up to 8,000 GPUs to support AI adoption across the UK early next year, with the possibility of expanding the programme to around 31,000 GPUs.

Stargate UK is expected be based across several sites in the UK, including in Cobalt Park in the newly designated AI Growth Zone. 

The launch of the AI Growth Zone comes during US president Donald Trump’s two-day state visit to the UK, with other announcements including £5bn investment from Google in UK AI and a $30bn injection of funding from Microsoft into the UK over the next four years.

The technology secretary, Liz Kendall, said: “This investment will create thousands of high-quality jobs, boost skills and inspire the creation of new firms.

“The north east’s industrial legacy is evolving into a future of innovation – unlocking a potential £30 billion and powering communities with the skills and careers to lead the UK’s next industrial revolution.”

Founder and chief executive at Nvidia, Jensen Huang, said: “We are at the big bang of the AI era – and the UK stands in a Goldilocks position, where world-class talent, research and industry converge. 

“By building state-of-the-art AI infrastructure and investing in British startups, we are unlocking the power of AI for the UK – fuelling breakthroughs, creating jobs and igniting the next industrial revolution.” 

Nscale chief executive Josh Payne commented: “As a UK-based company, we’re showing how we can be makers, not takers, of the most important technology of our time.”

Sam Altman, chief executive at OpenAI, added: “The UK has been a longstanding pioneer of AI, and is now home to world-class researchers, millions of ChatGPT users, and a government that quickly recognised the potential of this technology.

“Stargate UK builds on this foundation to help accelerate scientific breakthroughs, improve productivity and drive economic growth. This partnership reflects our shared vision that with the right infrastructure in place, AI can expand opportunity for people and businesses across the UK.”