Newcastle is the centre of a North East tech scene of about 45,000 digital jobs, backed by devolved funding, an AI Growth Zone and a strong university base. Here is what the latest figures say, where the region is strong, and where founders can find support.
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Updated 6 October 2026. Figures checked against their original sources in October 2026.
The North East tech scene in five numbers
- About 45,000 people work in the region’s digital sector, plus 8,400 in broader AI sectors (North East Combined Authority, Local Growth Plan evidence base, November 2025).
- £2.5 billion digital sector GVA in 2022, with the largest proportional growth of any UK region since 2010 (DCMS, Digital Sector Economic Estimates, 2026).
- 63 equity deals worth £141 million into North East smaller businesses in 2024 (British Business Bank, Nations and Regions Tracker 2025).
- £4.2 billion devolution deal over 30 years for the North East Combined Authority, in place since May 2024.
- Up to £30 billion of private investment and more than 5,000 jobs expected from the North East AI Growth Zone announced in September 2025 (UK Government, September 2025).
From coal to code: how Newcastle became a tech hub
In the 19th and early 20th centuries, Newcastle and the wider region were defined by coal, shipbuilding and heavy engineering. Today the same city is home to software consultancies, fintech firms, data science centres and a growing cluster of AI businesses.
Opencast is a good example. The digital consultancy works from Hoults Yard, a former industrial yard in the east end of Newcastle, and has grown from 12 people in 2017 to 503 permanent staff, with revenue expected to pass £50 million for 2025 (Opencast, December 2025).
Newcastle’s tech scene has grown from existing strengths rather than copying London. A few traits show up again and again:
- Practical products: many firms solve specific problems for businesses, government and the NHS.
- Close university links: spinouts and graduate talent from Newcastle, Northumbria, Durham, Sunderland and Teesside universities.
- A collaborative culture: active networks such as Dynamo North East, CyberNorth and Sunderland Software City.
- Lower costs than London: office space and salaries go further, which extends a startup’s runway.
The North East tech sector by the numbers
Regional tech data comes from several sources, each with a different boundary and time period, so it is worth knowing which figure means what.
| Measure | Figure | Source |
|---|---|---|
| Digital sector jobs (North East Combined Authority area) | About 45,000, plus 8,400 in broader AI sectors | NECA Local Growth Plan evidence base, November 2025 |
| Digital enterprises (former North East LEP area, 2023) | 2,465, including 605 in Newcastle | North East Evidence Hub, July 2025 (ONS data) |
| Digital sector GVA (2022) | £2.5 billion | DCMS, February 2026 |
| Equity investment into smaller firms (2024) | 63 deals, £141 million | British Business Bank, October 2025 |
| Private capital invested, all sectors (2025) | £180 million, up from £159 million in 2024 | UK Private Capital, June 2026 |
At UK level, the Tech Nation Report 2025 named the North East among the fastest-growing tech regions in the country, alongside the East Midlands and Scotland.
Where the North East is strong
AI and data
Newcastle Helix is home to the National Innovation Centre for Data (NICD). An independent study published in September 2026 estimated that NICD has added £141 million in net GVA since 2018, £116 million of it in the North East, with a projected £1.2 billion over the next decade (Newcastle Helix, September 2026).
The biggest change is the North East AI Growth Zone, announced in September 2025 alongside the UK-US tech partnership. It covers data centre sites at Blyth (Cambois) and Cobalt Park in North Tyneside, with partners including Blackstone and QTS, Nscale, OpenAI, NVIDIA and Microsoft (North East Combined Authority).
Fintech
Newcastle has one of the UK’s larger fintech clusters outside London, anchored by employers such as Sage and Atom bank and a growing group of startups. Kani Payments, Neptune North and Noggin HQ all reported growth or new funding in 2025 and 2026; you will find them in our 2026-27 list of North East tech startups.
Cybersecurity
Newcastle University and Northumbria University are both on the National Cyber Security Centre’s list of Academic Centres of Excellence in Cyber Security Research (NCSC). The CyberNorth cluster runs CyberFest each October, which drew more than 1,000 attendees in 2025.
Life sciences and healthtech
The region has strong research in diagnostics and ageing, through Newcastle Helix, The Biosphere and the International Centre for Life. It has also been a hard two years for funding: several local life sciences startups closed or were sold in 2025 and 2026, while others, such as InvenireX and Magnitude Biosciences, raised new rounds.
Green energy and advanced manufacturing
The North East Investment Zone, live since April 2024, brings £160 million of government funding over ten years and focuses on the green economy and advanced manufacturing, with sites on the River Tyne corridor, NETPark, Blyth and the International Advanced Manufacturing Park (Invest North East England). It is separate from the Tees Valley Investment Zone, which covers digital and creative.
Devolution and the North East Combined Authority
The North East Combined Authority (NECA) was set up in May 2024 and covers seven councils. Kim McGuinness was elected as the first North East Mayor on 2 May 2024.
The devolution deal is worth £4.2 billion over 30 years, including a £1.4 billion investment fund (£48 million a year), about £1.8 billion for adult skills and £900 million for transport (South Tyneside Council, 2023). The Local Growth Plan, launched in March 2025, names tech, digital and AI as one of six priority sectors.
Funding for North East tech companies
Most early-stage tech funding in the region comes through a small number of regional funds and investors:
- North East Investment Fund: £70 million, launched in November 2025 through The North East Fund, with loans up to £1 million (North East Elevate) and equity from £50,000 to £1 million (North East Accelerate, managed by Mercia) (The North East Fund).
- Northern Powerhouse Investment Fund II: £660 million across the North, launched in March 2024. In the North East, NEL Fund Managers run loans and Maven runs equity of up to £5 million (British Business Bank).
- Regional venture investors: Northstar Ventures, DSW Ventures and the Venture Sunderland Fund back many of the region’s seed rounds, often alongside Innovate UK grants and angel investors.
The gap is larger rounds. The North East took about 3.1% of UK smaller-business equity deals in 2024 but only 1.3% of the value (British Business Bank, 2025), and companies looking for Series B money and beyond usually still look to London or overseas.
Universities, talent and innovation spaces
- Newcastle University: home to the National Innovation Centre for Data and the National Innovation Centre for Ageing, both based at The Catalyst on Newcastle Helix.
- Northumbria University: strengths in computer and information sciences, cybersecurity and design.
- Durham, Sunderland and Teesside universities: spinouts such as Magnitude Biosciences at NETPark, plus software and digital skills courses.
- Innovation spaces: Newcastle Helix, The Catalyst, PROTO in Gateshead, NETPark in County Durham and Sunderland Software City.
- Spinout support: Northern Accelerator helps the region’s universities turn research into companies.
Events and networks worth knowing
- TechNExt: the region’s tech festival. The 2026 edition ran from 15 to 19 June with more than 3,000 attendees; TechNExt 2027 is planned for 14 to 18 June 2027 (TechNExt).
- Thinking Digital: a conference on how technology shapes work and society, held at The Glasshouse in Gateshead (20 to 21 May in 2026) (Thinking Digital).
- CyberFest: CyberNorth’s annual cybersecurity festival, each October.
- BSides Newcastle: a community information security conference, next on 28 November 2026 (BSides Newcastle).
- Dynamo North East: the not-for-profit that champions the regional tech sector and runs the Dynamites awards.
- Sunderland Software City: business support and skills programmes for software companies across the region.
Challenges and opportunities
The challenges are familiar: limited local scale-up capital, skills gaps in areas such as AI and advanced cybersecurity, and a national profile that still lags behind the region’s results. The life sciences closures of the last two years show how hard the gap between seed funding and Series A can be.
The opportunities are bigger than they were two years ago. The AI Growth Zone brings data centre investment and international partners, the devolution deal gives the region long-term funding of its own, and the new North East Investment Fund adds early-stage money. Lower living and office costs than London still help companies attract and keep talent.
Telling your story in a growing tech region
As more North East tech firms compete for customers, investors and staff, the ones that explain what they do clearly have an advantage. That now includes how your business appears when buyers ask AI assistants such as ChatGPT or Perplexity for a supplier.
Contentifai is a content and AI visibility agency based in Gateshead. We write monthly blog content from £440 a month, refresh existing pages through Content Optimisation from £220, and track how AI assistants describe your business with our AI Visibility Report from £200 a month. Get in touch to talk about your goals.
Frequently asked questions
Is Newcastle a good place for tech companies?
Yes, for many. Newcastle offers university talent, lower costs than London, active networks and regional funds. The North East’s digital sector employs about 45,000 people (North East Combined Authority, 2025). The main weakness is limited local funding for larger growth rounds.
What is the North East AI Growth Zone?
Announced by the UK Government in September 2025, the North East AI Growth Zone covers data centre sites at Blyth and Cobalt Park in North Tyneside. It is expected to bring up to £30 billion of private investment and more than 5,000 jobs.
How much is the North East devolution deal worth?
The North East devolution deal is worth £4.2 billion over 30 years. It includes a £1.4 billion investment fund, about £1.8 billion for adult skills and £900 million for transport, managed by the North East Combined Authority.
Where can North East tech startups get funding?
Common sources include the £70 million North East Investment Fund, the Northern Powerhouse Investment Fund II, Northstar Ventures, DSW Ventures, the Venture Sunderland Fund, Innovate UK grants and angel investors.
Further reading and resources
- North East Evidence Hub: digital tech data
- British Business Bank Nations and Regions Tracker 2025
- Tech Nation Report 2025
- North East Combined Authority
- Invest Newcastle
- Northern Accelerator
- CyberNorth
- Newcastle Helix
- The North East Fund
- Dynamo North East
- Sunderland Software City
More from Contentifai: 15 high-growth tech startups in Newcastle and the North East (2026-27), copywriting jobs in Newcastle and the North East and our work as a North East content agency.