James Hunnybourne, Executive Chairman at Cybit
The North East of England is undergoing a powerful transformation. Long celebrated for its industrial heritage, the region is redefining itself as a centre of regeneration, innovation, and opportunity. At the heart of this evolution is a construction sector that is smarter, greener, and increasingly powered by technology.
Regeneration for all
From first-time buyers and down-sizers to entrepreneurs and established businesses, the North East is fast becoming a destination for people seeking both opportunity and affordability. Backed by a £14 billion investment programme led by Mayor Kim McGuinness, the region is creating 23 strategic development sites across Newcastle, Sunderland, Durham and beyond, spanning residential, commercial, and industrial zones.
Additional regeneration efforts, like the revitalisation of Newcastle’s Quayside and infrastructure upgrades in Northumberland’s coastal towns, are boosting property values and creating liveable communities that attract new residents and businesses.
These projects go far beyond bricks and mortar. They are about building inclusive communities, generating meaningful jobs, and offering people a better quality of life.
The AI growth zone
So, what is driving this new wave of transformation in the North East? On the most significant catalysts is the UK Government announcing an AI Growth Zone – a bold initiative that is set to create over 5,000 high-skilled jobs and attract £30 billion in private investment.
These designated zones signal a shift in how critical advanced infrastructure has become the UK’s future economy. With world-class compute capabilities and innovation hubs planned for sites like Blyth and Cobalt Park, the potential is huge. But the real opportunity lies in how this technology translates into practical, scalable solutions for organisations across the country.
This is not just about building data centres – it is about ensuring that businesses can securely adopt AI, make sense of their data, and build trust and resilience needed to scale. That requires careful planning with experienced advice to accelerate innovation safely and cost-effectively.
The North East now stands at the forefront, not just in terms of raw compute power, but in leading the secure, intelligent, and inclusive adoption of AI across industries.
Tech powering construction
Home to over 265 innovative construction enterprises and generating more than £6 billion in turnover, the North East is firmly establishing itself as a national leader in the future of construction. With strong links to universities and research hubs, the ecosystem is an ideal location for startups, SMEs, and global corporations alike.
Innovation and technology are at the core of this momentum. In addition to embracing AI, the North East is leading the development of digital twins and Building Information Modelling (BIM) to streamline design processes, reduce waste and improve project outcomes. It is also piloting the use of sustainable materials and modern methods of construction, helping to lower carbon footprints and meet the UK’s net zero targets, while building smarter and more resilient communities that are ready for the future.
Why this matters
The North East is uniquely positioned to lead the UK’s next chapter of growth. With affordable land and housing, world-class universities, a digitally savvy workforce, and access to renewable energy, the region offers untapped opportunities for sustainable development.
But it is the government’s backing and designation as an AI Growth Zone that truly sets the region apart, accelerating its leadership in secure, scalable, and inclusive AI adoption. From intelligent construction technologies and predictive maintenance to data-driven urban planning, AI is powering smarter, faster, and greener development.
For investors, businesses, and residents, it is a chance to be part of a transformative movement – one that is shaping the future of the UK economy through inclusive innovation and resilient growth.
