A collaborative proposal has been submitted to the UK Government to designate two sites in Hartlepool and Darlington as part of a new AI Growth Zone, aiming to position the Tees Valley area at the forefront of digital and technological development.
Backed by local MP Jonathan Brash and involving regional developer Hellens Group, a national data centre operator, and an investment firm, the bid centers on establishing cutting-edge data centre infrastructure with significant power capacity and sustainable features.
Key locations and development plans include:
Queens Meadow Business Park, Hartlepool: Spanning 160 acres, with over 110 acres allocated for the proposed data centre and supporting infrastructure. The site is strategically important for the town, offering space for large-scale digital investment, skilled jobs, and innovation.
Burtree Garden Village, Darlington: Part of a broader development combining housing and employment uses, including 2,000 homes and up to 2 million sq ft of employment and leisure space. Homes England is a joint-venture partner, supporting the integration of residential and commercial growth.
Jonathan Brash expressed strong support, emphasizing the bid’s potential to attract long-term investment, create hundreds of high-quality jobs, and foster local digital skills development. He highlighted the importance of aligning the project with Hartlepool’s ambitions for innovation and clean growth, noting the site’s strategic location and skills base.
Both locations fall within the Tees Valley Combined Authority area and are seen as ideal for scaling smart infrastructure, low-carbon energy solutions, and advanced manufacturing—key regional priorities.
The proposal emphasizes sustainability, proposing a low-carbon district heating system that utilizes heat generated from the data centre—offering a community-wide environmental benefit. The development also plans to strengthen ties with local educational institutions, including Teesside University, Hartlepool College of Further Education, and Darlington College, to support skills development and digital training.
The AI Growth Zone initiative is part of the UK Government’s strategy to create designated areas for AI-optimized data centres. Benefits include streamlined planning processes, targeted incentives, and enhanced power capacity access. Local authorities would retain 100% of business rate growth from these zones for 25 years—projected to generate between £6 million and £10 million annually.
The scheme aims to establish these zones as hubs of skills, innovation, and economic opportunity—not merely data hosting sites. If approved, development is expected to commence in 2028, marking a major step in regional digital infrastructure growth and advanced technological deployment.
This bid reflects a strategic effort to harness AI and data centre innovation as catalysts for regional economic growth, clean energy, and digital skills development, ensuring the Tees Valley area becomes a nationally significant hub for the future of AI-driven infrastructure.
