Question to the Department for Science, Innovation & Technology:

To ask the Secretary of State for Science, Innovation and Technology, what plans the Government has to help ensure that local communities receive long-term economic benefits from new AI and data centre developments.

TechUK estimate that the gross value added of data centres is currently £4.7bn in the UK. This government encourages data centre developers to consider the local benefits that data centre build can bring, especially in areas with favourable conditions for heat offtake, or where skills and training can be provided. Last year, the government reformed the National Planning Policy framework to ensure that local planning authorities integrate data centres into an area’s local plan, ensuring alignment with local and national long-term economic goals.

Through the AI Growth Zones initiative, we aim to crowd-in tens of billions of pounds in private investment and drive growth through job creation and by creating opportunities such as creating skills and apprenticeships pathways, R&D partnerships with local universities and creating investment opportunities for British businesses to participate in major AI projects.

We are ensuring that local communities benefit by providing £5m for each AI Growth Zone to support skills and adoption in the area, and by ensuring that local authorities keep 100% of all business rates generated by sites where pre-existing arrangements do not exist.