UK Designates North Lanarkshire as AI Growth Zone, Unlocking Major Data Center Investment

UK Designates North Lanarkshire as AI Growth Zone, Unlocking Major Data Center Investment January 29, 2026 The UK government has designated North Lanarkshire in Scotland as its latest AI Growth Zone, a strategic move aimed at capturing the booming demand for artificial intelligence compute infrastructure. This designation is part of a national strategy to foster data center development through financial incentives and prioritized power access, positioning the UK to compete in the global AI race. The initiative is set to catalyze significant private investment, led by Scottish data center operator DataVita. The company announced that the AI Growth Zone status will unlock a total of £8.2 billion ($11.3 billion) in private capital for the region near Glasgow. This investment package is earmarked for building up to 500 megawatts (MW) of new hyperscale data center capacity and developing 1 gigawatt (GW) of private wire renewable energy projects to power them. A separate £543 million ($748.8 million) community fund will also be established to support local projects over the next 15 years. DataVita, which already operates a 24MW facility (Fortis DV1) in the area, will be the primary developer for the new capacity. While the firm has not specified a definitive timeline, it aims to eventually supply the full 500MW for hyperscale clients. Company managing director Danny Quinn emphasized the broader vision, stating, "Scotland has everything AI needs - the talent, the green energy, and now the infrastructure. But this goes beyond the physical build. We're creating innovation parks, new energy infrastructure, and attracting inward investment from some of the world's leading technology companies." The North Lanarkshire zone is the fifth such area established since the UK government launched the AI Growth Zones scheme in January 2025. The program has already created zones in Wales, Oxfordshire, and near Newcastle. UK Technology Secretary Liz Kendall highlighted the national benefits, saying, "Today’s announcement is about creating good jobs, backing innovation and making sure the benefits AI will bring can be felt across the community." Industry experts welcomed the news but pointed to ongoing challenges. Matthew Baynes, VP for Secure Power and Data Centers at Schneider Electric UK & Ireland, noted that while the zones help catalyze investment, access to renewable power remains "one of the biggest hurdles." He argued that the initiative presents a clear opportunity to merge AI and sustainability goals by turning data centers into future energy centers with behind-the-meter generation. "Scotland, with its cool temperate climate and rich conditions to generate renewable energy, provides a key opportunity to create secure, scalable, and sustainable infrastructure capable of galvanising the AI race," Baynes said. Source: datacenterdynamics