Ben Houchen says Prime Minister has backed Teesside AI growth zone bid over net zero project
Sir Keir Starmer has given his full backing to Teesside becoming the UK’s “premier AI growth zone”, Mayor Ben Houchen has said.
The Prime Minister appears to have overruled Energy Secretary Ed Miliband, who had reportedly favoured BP’s blue hydrogen project to take a major portion of the Teesworks site.
Mr Miliband was due to make the development consent order decision for H2Teesside last month, but instead pushed it back to a later date.
Now, it looks like Europe’s largest data centre will be built on the land instead, as part of Lord Houchen’s bid to become an AI growth zone.
The government is yet to announce the new AI growth zones, which will allow companies to receive rapid planning approval and preferential energy access.
North Yorkshire has also bid to become one, pitching a data centre at Drax power station.
However, in a statement, Lord Houchen said: “It is fantastic news for Teesside that the Prime Minister and DSIT (the Department of Science, Innovation and Technology) have thrown their full weight behind Teesside by making us the premier AIGZ (AI growth zone).
“This project will bring huge amounts of international investment and jobs to our region.
“Sovereign AI capability is critical for UK growth and Teesside is the only place ready to deliver this for our nation.”
Lord Houchen previously welcomed BP bosses to Teesworks in a bid to secure new investment and in 2021 said its plans were “marking us out as the go-to place for innovation in the hydrogen sector”.
However, in recent months, Teesworks Limited and the South Tees Development Corporation in the form of the ‘South Tees Group’ (STG) have themselves objected to the project, instead favouring the construction of a data centre.
In a submission to Mr Miliband, STG said: “Teesworks is the only site in the UK with sufficient available land and the power connections to be able to AI growth zone at scale, and so it is the UK’s premier site in this respect.
“It is by far and away the Government’s best opportunity for delivering AI-led economic growth, and STG is ahead of the game having already secured approval for a data centre.”
It added that approval for the blue hydrogen project “would be inherently incompatible and irreconcilable with AI growth zone status and the nationally significant benefits which that designation will bring to Teesside”.
The Daily Telegraph reported that the Prime Minister himself backed the data centre project over Mr Miliband’s net zero hopes.
In a letter sent to Lord Houchen, former Technology Secretary Peter Kyle said: “The Government will put its full weight behind Teesworks and Teesside International Airport becoming an AI growth zone.”
This could potentially be a blow for York and North Yorkshire Mayor David Skaith’s bid.
DSIT has been contacted for comment. A Department for Energy Security and Net Zero spokesperson said: "The statutory deadline for the H2Teesside application development consent order decision has been extended.
“All infrastructure planning decisions this government makes will be in the national interest – helping deliver the Government’s plan for change.”