Ahead of next week’s UK Budget, the government has outlined a series of measures aimed at supporting investment, job creation, and economic growth across the country as part of its Modern Industrial Strategy.

Over the past month, international and domestic companies have committed £24.25 billion in private investment, including major projects from firms such as Vantage Data Centers and Microsoft.

A new AI Growth Zone will be established in South Wales, supported by £10 billion of private investment and expected to create at least 5,000 jobs, including at sites such as the former Ford Bridgend Engine Plant.

Each AI Growth Zone will receive up to £5 million in government funding to support business adoption of AI and invest in local skills.

The South Wales zone will span several sites along the M4 corridor and has the potential to harness more than 1GW of capacity by the early 2030s.

Companies, including Vantage Data Centers, will work with regional universities to support skills development.

To strengthen the UK’s position in AI research and industry, the government will introduce an “advance market commitment” to act as a first customer for UK start-ups developing AI hardware.

Up to £100 million will be available to support early-stage companies.

The government is also launching the process to allocate up to £250 million in free compute for British researchers and start-ups.

A new Sovereign AI Unit, chaired by venture capitalist James Wise, will be backed by almost £500 million to help high-potential UK AI start-ups and scale-ups access capital and support.

Additional AI ambassadors have been appointed to promote adoption and innovation, including economist Simon Johnson, Monzo co-founder Tom Blomfield, and Google DeepMind VP of Research Raia Hadsell.

A strategy to accelerate scientific discovery through AI is also being introduced, supported by up to £137 million in government funding.

Its first mission will focus on using AI to speed up the development of new drugs and treatments.

Secretary of State for Science, Innovation and Technology Liz Kendall said:

“We are ambitious for our country and believe Britain’s best days lie ahead. The backing by international investors today is a vote of confidence in the UK, and we’re determined to do even more to ensure we are backing British businesses, workers and researchers to benefit from the opportunities AI brings.”

NVIDIA and other technology firms have confirmed ongoing collaborations and investment to help build the UK’s AI capabilities and support its position in the global sector.

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