North East has the potential to become a major global digital hub but infrastructure challenges must be addressed
That was the central message from a North East Chamber of Commerce Thought Leadership event, held at Newcastle Racecourse on Wednesday 4 November as part of North East Expo.
The event brought together business leaders and infrastructure experts to explore how physical and digital connectivity can support investment, innovation and long-term economic growth across the region.
Speakers included Ed Bissell, sales director at Stellium Datacentres; Will Wilcock, external affairs advisor at National Grid; and Joe Weston, design team manager at Northern Powergrid. The panel discussion was chaired by Adam Heather, partner at Womble Bond Dickinson.
The discussion highlighted the North East's growing importance in global digital connectivity, with subsea cable infrastructure connecting the region to international markets and attracting interest from major technology businesses.
Ed Bissell explained how this connectivity is helping Newcastle compete with established European data centre locations and creating opportunities for significant investment.
“We've already got the connectivity in place, and that's putting the North East on the map for some of the world's biggest technology companies. With the right energy infrastructure and skills, there's no reason why the region can't become a major international hub for data centres and AI over the next five years.”
However, the rapid growth of artificial intelligence and increasingly energy-intensive data centres is driving significant new demand.
National Grid outlined the scale of investment required to modernise the electricity transmission network through The Great Grid Upgrade, including major projects across the North East designed to increase capacity, improve resilience and support future development.
Will Wilcock, said: The North East has a huge opportunity from the growth of AI and we’re investing in the network to support the region’s future needs, including at Blyth and Tees Dock. Early engagement is absolutely key. By working collaboratively across the region, we can unlock investment, strengthen business confidence and deliver lasting benefits for communities.”
The discussion also explored the challenges of connecting major developments to the electricity network, with Joe Weston of Northern Powergrid highlighting the importance of strategic planning, realistic timescales and coordination between developers and network operators.
Panellists acknowledged that high energy costs, planning processes and the availability of electricity capacity could influence future investment decisions, with greater collaboration needed to ensure infrastructure projects are aligned with the region's economic ambitions.
A key theme was the need to ensure major infrastructure investment translates into tangible benefits for the North East.
While data centres may not directly generate thousands of permanent jobs, speakers highlighted the wider opportunities they can create through regional supply chains, technology businesses, engineering, construction and specialist skills.
The importance of investing in education and workforce development was also emphasised, ensuring local people and businesses are equipped to benefit from emerging industries.
Tim Marsden, knowledge manager at the Chamber, said: “Today's discussion highlighted the scale of the opportunity ahead of us. The North East already has many of the foundations needed to become a leading centre for digital connectivity and innovation.
“The challenge now is bringing business, government and infrastructure providers together to turn that potential into investment, jobs and lasting economic growth for our region."
Improving connectivity, supporting the transition to a low-carbon economy and creating quality jobs are central priorities in the Chamber's Unlocking the North East Economy policy plan for 2025–27.
The plan calls for greater investment in physical and digital infrastructure, alongside action to strengthen skills provision and create the conditions for businesses to invest and grow.
The event, The Future of Connectivity in the North East, was sponsored by Stellium Datacentres, with support from NCG as associate sponsor of the Chamber's Knowledge and Learning Programme.