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Written question asked by Lord Taylor of Warwick (Non-affiliated) on Monday, 13 April 2026, in the House of Lords. It was due for an answer on Monday, 27 April 2026. It was answered by Baroness Lloyd of Effra (Labour) on Monday, 27 April 2026 on behalf of the Department for Science, Innovation and Technology.


Data Centres: Regional Planning and Development

Question

To ask His Majesty's Government what assessment they have made of the impact of large-scale AI data centre developments on regional economic growth.

Answer

Data centres are foundational to a competitive UK economy, underpinning the digital services that drive productivity across sectors—from finance and advanced manufacturing to public services and the creative industries. By enabling AI, cloud computing and data‑intensive services, they deliver economy‑wide productivity gains nationally and regionally, as well as strengthen the UK’s attractiveness as an investment destination.

TechUK has estimated that UK data centres contribute £4.7 billion pounds in gross value added each year and support-tens of thousands of high-quality jobs across construction, operations and specialist supply chains. Operational employment is generally highly skilled and well paid, with wider employment supported through demand for electrical engineering, cooling, digital infrastructure and maintenance services. More widely, TechUK estimates that each job funded by data centre operations supports between 1.4–2.5 jobs in the wider economy.

HMG’s AI Growth Zone programme unlocks significant private investment and secures compute to drive AI growth, supporting high‑value local jobs and skills. HMG is investing up to £5 million per AI Growth Zone, in the North-East of England, Oxfordshire, North and South Wales, and Lanarkshire in Scotland, working with local areas to design tailored schemes to realise local economic benefits and boost AI adoption in local communities.


Secondary information

Type
Written question
Reference
HL16298
Session
2024-26
Subjects
Economic growth Regional planning and development Artificial intelligence Data centres
Link
View this Written question on www.parliament.uk