York and North Yorkshire AI Growth Zone bid rejected

Summarised from 2 outlets · Updated 15 Oct, 06:03 · Archive

The government has rejected York and North Yorkshire's bid to become one of five UK AI Growth Zones. The region's Combined Authority had proposed a 'world's first carbon-negative data centre' at Drax Power Station, claiming the project could unlock £85 billion in investment and secure at least 1.2 GW of renewable energy – enough to power over a million homes. The data centre would have been cooled using licensed river water.

The AI Growth Zone scheme, launched by the government in 2025, offers selected UK regions millions of pounds in investment and planning powers to accelerate data centre development and strengthen the country's position as an AI leader. A government spokesperson said the Drax plan had failed to meet the necessary criteria, including 'credible plans for energy delivery, environmental considerations, and local economic benefit', adding that 'all bids are assessed on their individual merits'.

The Combined Authority said the region remained 'committed to driving the area's growth', redirecting efforts towards regeneration through mayoral development zones in Scarborough, Selby and York. Campaign group Biofuelwatch welcomed the rejection, arguing that despite the plan's sustainability guarantees, the use of Drax's biomass would have made it 'highly polluting'.

How it is being reported

• Plans for ‘world’s first carbon-negative’ Yorkshire data centre rejectedA York and North Yorkshire bid to become one of five UK AI Growth Zones has been rejected by the government.Gazette & Herald (Malton) · 15 Oct, 05:00
• Plans for ‘world’s first carbon-negative’ Yorkshire data centre rejectedA York and North Yorkshire bid to become one of five UK AI Growth Zones has been rejected by the government.The Press (York) · 15 Oct, 05:00

In this story: York and North Yorkshire Combined Authority · Drax Power Station · Biofuelwatch · UK Government

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