18 Aug 2025
by Fabien Vieau, Veronica Dorociak

Will AI Growth Zones deliver local value or just national headlines?

Guest blog by Fabien Vieau, Founder and CEO and Veronica Dorociak, Head of Policy and Public Affairs at Sepia

Across Europe, governments are acting with increasing urgency to position themselves at the forefront of the AI race. Earlier this year, France announced the selection of over 35 sites dedicated to supporting AI development - an ambitious move to ensure the country is ready for the infrastructure demands of emerging technologies. The UK is also stepping up, with the government’s proposal for AI Growth Zones signalling a clear intention to support innovation at scale and secure a competitive edge.

The idea behind AI Growth Zones is the right one. It recognises that supporting AI is about more than just compute capacity - it’s about building thriving local ecosystems where innovation, talent, infrastructure, and investment can come together. Crucially, the government seems to understand that these zones should not simply be clusters of data centres, but dynamic spaces that connect to wider regional priorities, from research and skills to enterprise and regeneration. This is a smart, forward-looking approach.

However, it is difficult to ignore that sustainability receives only limited attention in the current plans. The ambition feels modest compared to the scale of the challenge. It seems we are risking moving backwards, treating sustainability as a tomorrow’s problem and compromising on an issue that will inevitably resurface if not addressed today. The UK simply does not have the luxury to rush through deployment without thinking strategically about future energy needs, regional grid capacity, and the long-term integration of new infrastructure into the overall system. Being thoughtful and deliberate is ultimately as valuable as being fast.

Equally important is the question of societal acceptance. The data centre sector, while increasingly vital, continues to face significant scrutiny. Concerns about energy consumption, environmental impact, water use, and limited direct employment benefits are growing. The success of AI Growth Zones will depend not just on technical capacity and flexibility of the planning law, but on the perception of these concerns - will data centre operators and public stakeholders see them as a barrier to progress, or an invitation to do things better?

As enthusiasm for AI builds, there is a shared responsibility, both for government and industry, to address major blind spots - territorial planning and societal integration. The success of AI Growth Zones will depend not only on technological excellence but on the ability to align projects with local priorities. For policymakers, that means looking beyond short-term economic gains and setting expectations high. For a data centre operator, that means engaging early with host communities, designing infrastructure that fits the place it is in, and ensuring real benefits flow back to local people. Rather than seeing authorities and residents as stakeholders to be managed, they should be embraced as partners in shaping the environmental and social value vision.

Done right, digital infrastructure can enable much more than just compute - it can support brownfield regeneration, unlock energy synergies, and become a catalyst for local innovation. That’s the promise of AI Growth Zones if we take a “data centres in context” approach. These projects should be shaped around the specific strengths, constraints, and ambitions of each area, not imposed from above. We should be moving from infrastructure in place to infrastructure of place - designed with and for the communities they aim to serve.


techUK's Policy and Public Affairs Programme activities

techUK helps our members understand, engage and influence the development of digital and tech policy in the UK and beyond. We support our members to understand some of the most complex and thorny policy questions that confront our sector. Visit the programme page here.

 

Upcoming events

Latest news and insights 

Learn more and get involved

 

Policy Pulse Newsletter

Sign-up to get the latest tech policy news and how you can get involved in techUK's policy work.

 

 

Here are the five reasons to join the Policy and Public Affairs programme

Download

Join techUK groups

techUK members can get involved in our work by joining our groups, and stay up to date with the latest meetings and opportunities in the programme.

Learn more

Become a techUK member

Our members develop strong networks, build meaningful partnerships and grow their businesses as we all work together to create a thriving environment where industry, government and stakeholders come together to realise the positive outcomes tech can deliver.

Learn more

Meet the team 

Antony Walker

Antony Walker

Deputy CEO, techUK

Alice Campbell

Alice Campbell

Head of Public Affairs, techUK

Edward Emerson

Edward Emerson

Head of Digital Economy, techUK

Nimmi Patel

Nimmi Patel

Head of Skills, Talent and Diversity, techUK

Samiah Anderson

Samiah Anderson

Head of Digital Regulation, techUK

Audre Verseckaite

Audre Verseckaite

Senior Policy Manager, Data & AI, techUK

Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

Archie Breare

Archie Breare

Policy Manager - Skills & Digital Economy, techUK

Daniella Bennett Remington

Daniella Bennett Remington

Policy Manager - Digital Regulation, techUK

Oliver Alderson

Oliver Alderson

Junior Policy Manager, techUK

Tess Newton

Team Assistant, Policy and Public Affairs, techUK

 

 

Authors

Fabien Vieau

Fabien Vieau

Founder and CEO, Sepia

Veronica Dorociak

Veronica Dorociak

Head of Policy and Public Affairs, Sepia