Wales Tech Week
The 10th Annual Wales Technology Awards will be taking place on the final evening of Wales Tech Week 2025, Wales’ largest international tech summit. Photo credit: Wales Tech Week

A major package of new reforms and investment will put artificial intelligence at the heart of the British government’s mission to drive growth, create jobs and spread prosperity across the country.

A new AI Growth Zone in South Wales will create more than 5,000 new jobs for local communities over the next decade, including at the former Ford Bridgend Engine Plant.

International companies are hosting new centres in the UK and British companies are increasing investment, with £24.25 billion in private investment committed in the last month alone.

“This government promised to unlock growth and that is exactly what we are doing,” said Chancellor of the Exchequer Rachel Reeves. “Today’s confirmation of our fourth AI Growth Zone is our Plan for Change in action – creating thousands of jobs and unlocking new investment for local communities in the industries of the future, cementing our position as Europe’s leading tech sector.”

In the zones

Companies like Vantage Data Centers and Microsoft are joining forces with the government to deliver the zone. Set in South Wales, £10 billion of investment will unlock at least 5,000 jobs.

“Wales will now have two brand-new AI Growth Zones bringing thousands of jobs to both North and South Wales and driving economic growth across the country,” said Secretary of State for Wales Jo Stevens. “South Wales is already the home of a growing tech industry and this major investment in the region will help cement the UK’s place as a global leader in AI.”

Several sites will make up the new zone stretching along the M4 corridor from Newport to Bridgend, which has the potential to harness over 1GW by the early 2030s.

“We are ambitious for our country and believe Britain’s best days lie ahead,” said Secretary of State for Science, Innovation, and Technology, Liz Kendall. “Today we’re announcing a package of measures that ensure we seize the opportunities to get jobs and growth in every part of the country.”

Venture capitalist James Wise will chair the Sovereign AI Unit, backed by almost £500 million in investment to help build and scale AI capabilities on British shores.

“I’m excited to start as Chair of the UK’s Sovereign AI Unit, which will launch next year,” said Wise. “This will be a new type of government fund – one which aims to be the first choice for founders building essential parts of the UK’s AI infrastructure and economy. One which uses the awesome power of the British state to help scale our AI breakthroughs.”

The government will act as a “first customer” for promising UK start-ups building high-quality AI hardware. AI Pathfinder is fast-tracking UK sovereign AI with £150 million GPU deployment in Northamptonshire.

“AI Pathfinder is driving economic growth and social value through sovereign AI,” said Martin Bellamy, CEO of AI Pathfinder. “With an initial investment of over £150 million, we are equipping the UK’s public sector, industry, and national security communities with the secure infrastructure they demand. This is a vote of confidence in the UK’s vision: delivering world-class capability while keeping sensitive data firmly on British soil.”

AI ambassadors boost benefits

New AI ambassadors will help maximise the benefits of AI for Britain, including Monzo Co-founder Tom Blomfield.

“Britain should be the best place in the world for brilliant technical people – especially those early in their careers – to start AI companies,” said Blomfield. “As an AI Ambassador, I want to help the government understand what founders need to succeed, so more people feel confident taking risks and building world-changing companies in the UK.”

Raia Hadsell, Vice President, Research at Google DeepMind, will champion the UK’s place at the forefront of AI innovation and security.

“I’m excited to collaborate with the UK government, alongside other experts, to unlock the transformational benefits of AI for society,” said Hadsell. “Being at the frontier of AI presents tremendous opportunities to improve people’s lives through AI-enabled education, health outcomes and scientific discoveries.”

David Howson, President of Vantage Data Centers, EMEA, welcomed the regional focus.

“This is a welcome signal of the government’s commitment to South Wales and strengthens what is already one of the most exciting AI development opportunities in the UK,” said Howson. “As a company at the forefront of global AI infrastructure, we see world-class potential here in South Wales.”

Hugh Milward, Vice President, External Affairs, Microsoft UK, confirmed the company’s involvement.

“This is fantastic news for Wales and for all organisations connected to its growing digital ecosystem,” said Milward. “We’re proud to be investing in South Wales and playing our part to deliver this new AI Growth Zone, helping to build the AI economy of the future and deliver benefits for communities across the region.”

A new strategy is being unveiled to make sure AI supercharges scientific discovery backed by up to £137 million in government funding.

“In my view, scientific discovery represents the single most important application area for AI,” said Professor Chris Bishop FRS FREng FRSE Technical Fellow, and Director of Microsoft Research AI for Science. “The consequences of accelerating scientific discovery are far-reaching, from the development of life-saving drugs to the efficient design of sustainable materials.”

Strategy support from researchers

The strategy received broad support from the research community.

“AI is rapidly expanding what is scientifically possible,” said Charlotte Deane, Executive Chair of the Engineering and Physical Sciences Research Council and Professor of Structural Bioinformatics at the University of Oxford. “We are committed to harnessing its potential to improve people’s lives and drive economic growth, from better healthcare, cleaner energy, to more resilient infrastructure.”

Pushmeet Kohli, VP, Science and Strategic Initiatives, Google DeepMind, emphasised the importance of data.

“AI-enabled science will have significant benefits for society so it’s crucial to ensure UK scientists and researchers have access and understanding of the leading AI models and agents,” said Kohli. “It’s exciting to see the UK government prioritising investment in critical ingredients like data to facilitate future scientific breakthroughs and unlock opportunities in areas like drug discovery, fusion energy and new materials.”

Professor Evelyn Welch, Vice-Chancellor and President of the University of Bristol, highlighted local infrastructure capabilities.

“As a research-intensive university at the heart of the UK’s AI revolution, we support the announcement of the AI for Science Strategy and are pleased to be a key part of this,” said Welch. “Earlier this year, we launched Isambard-AI, the world’s fastest supercomputer based at a university, which will spearhead AI innovation and scientific discovery in important areas such as drug discovery and climate research.”

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