The North East has the potential to become a major global hub for artificial intelligence, data centres and digital infrastructure, business leaders have said.
But experts told a North East Chamber of Commerce event at Newcastle Racecourse that cheaper energy, more capacity, better planning and stronger skills are needed to attract investment and drive growth.
Ed Bissell, sales director at Stellium Datacentres, said: "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."
Held on Wednesday, November 4, as part of the North East Expo, the event brought industry leaders together to discuss the region's strengths and challenges in becoming a digital technology centre.
Subsea cables and stronger links to global markets have already attracted major technology firms, making the North East a serious rival to established European data-centre locations.
But speakers warned that the rapid growth of AI and demand for data centres are driving a huge rise in energy use.
Will Wilcock, external affairs advisor at National Grid, 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."
National Grid is delivering the Great Grid Upgrade, a major programme to modernise the electricity transmission network.
The programme includes major North East projects to increase capacity, improve resilience and support future development.
Joe Weston, design team manager at Northern Powergrid, said careful planning and realistic deadlines were vital to connecting new projects to the energy network.
He called for developers and network operators to work closely together.
The panel agreed that high energy costs, limited electricity capacity and complex planning could deter investment unless organisations work more closely together.
They called for infrastructure investment to match the region's wider economic goals.
Panellists said digital growth must benefit the whole region, not just individual sites.
Data centres may not create many direct jobs, but they support work in supply chains, engineering, construction and technology services.
Speakers said investment in skills and education would help local people and businesses benefit from these emerging sectors.
Tim Marsden, knowledge manager at the North East Chamber of Commerce, 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."
Better connectivity, the shift to a low-carbon economy and quality jobs are central to the Chamber's Unlocking the North East Economy plan for 2025–27.
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The plan calls for more investment in physical and digital infrastructure, stronger skills provision and action to help businesses grow.
Stellium Datacentres sponsored the Future of Connectivity in the North East event.
NCG supported the event as an associate sponsor through the Chamber's Knowledge and Learning Programme.
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