INTELLIGENT TECHNOLOGY: INFRASTRUCTURE

In a move set to transform the UK’ s technology landscape, plans for a colossal new data centre campus on the Teeside industrial site have been granted outline approval.

The campus, to be situated on the former steelworks at Teesworks, has received permission from the Redcar and Cleveland Council. The 500,000-squaremetre development is a major strategic investment, positioning the region at the forefront of the burgeoning AI economy. The approval comes despite objections from BP Plc, which had raised concerns that the data centre could interfere with its own plans for a proposed blue hydrogen facility in the same industrial zone. However, the council ultimately sided with the data centre proposal, highlighting the strategic importance of digital infrastructure for future economic growth.

The development is anticipated to draw considerable investment and create a significant number of highskilled jobs, from construction and engineering to data science and AI research. This project is a key pillar of the UK government’ s broader strategy to support technology and innovation outside of London and the traditional‘ Golden Triangle’ of Oxford and Cambridge. By creating a dedicated hub for AI and data processing in the north-east of England, the government aims to foster a more balanced and resilient national tech ecosystem.

Data centres are the foundational infrastructure for the digital economy, and their importance has been supercharged by the rise of AI. The immense computational power required to train and run large language models and other AI systems has created an insatiable demand for energy and cooling, which the new Teeside campus is designed to meet. The region’ s industrial legacy and access to potential renewable energy sources make it an attractive location for such a power-intensive development. The project is being touted as a central component of the UK’ s efforts to ensure digital sovereignty and provide the necessary infrastructure for its own AI sector to thrive.

The approval of this project is more than just a local story; it reflects a broader European trend of nations competing to build the infrastructure needed to support the AI revolution. As AI becomes more integrated into business and society, the physical location of data centres, and the energy sources that power them, are becoming critical strategic assets. The Teeside project’ s potential to become an“ AI Growth Zone” is a powerful signal to international technology firms that the UK is serious about becoming a leader in this field. p

32 INTELLIGENTCIO EUROPE www. intelligentcio. com