UK AI Growth Zones – Opportunities for U.S. Power and Energy Companies

The UK Government has launched AI Growth Zones to accelerate the deployment of large-scale AI and data center infrastructure by prioritizing planning, grid access and investment coordination in designated locations. While positioned as a digital and technology initiative, AI Growth Zones are fundamentally driven by the need to secure reliable, high-volume electricity supply, creating commercial opportunities for U.S. power generation and energy infrastructure companies.

AI data centers represent one of the fastest-growing sources of electricity demand in the UK, often requiring power volumes that exceed near-term grid connection availability. As a result, UK developers and policymakers are increasingly open to alternative power delivery models, including co-located or nearby generation assets and private offtake arrangements. U.S. companies with expertise in firm, flexible, or low-carbon power generation may find opportunities to partner directly with AI and data center developers to deliver dedicated supply outside traditional utility procurement pathways.

The UK regulatory framework allows for private wire and bilateral power purchase agreements, enabling generators to sell electricity directly to large end users. In the context of AI Growth Zones, this model helps keep energy costs predictable for AI companies and makes clean energy projects more attractive to build and finance. Co-location of power generation with AI infrastructure may also reduce exposure to grid congestion, volatile wholesale prices, and connection delays.

The primary route to market for U.S. companies is through partnerships with AI Growth Zone sponsors, UK data center developers and infrastructure consortia assembling zone proposals. Early engagement is critical, as access to power is a key selection criterion for zone designation.  For more information on AI Growth Zones or the route to market, please contact Leah Kollhoff, Commercial Specialist, at the U.S. Embassy London via Leah.Kollhoff@trade.gov.