Plans to develop an innovation district of national significance in Durham City have taken a major step forward, with the signing of a key agreement.
We have signed a Collaboration Agreement with Durham County Council and venture partner Muse to accelerate the development of the Aykley Heads site as a hub for investment and innovation. The site is part of the Durham Innovation District in the heart of the historic city.
This follows the announcement of the Joint Venture and Development Management Agreement between Muse and the County Council in May 2025.
Signing the Collaboration Agreement is a key step for moving Aykley Heads forward. It sets out how the joint venture and the University will work together to deliver the project and help grow the wider Durham Innovation District.
The innovation district brings together 'Triple Helix' partners including local government, universities, and businesses to work together. It already includes major organisations such as our Business School, North East Chamber of Commerce, Durham Constabulary, Waterstons, and council offices at Salvus House and Corten House. It also includes The Rivergreen Centre, which is being refurbished to become the Council's new headquarters, in place of County Hall which is to be demolished. The Aykley Heads area also has planning permission for 40,000 square metres of offices.
This new public-private partnership, supported by the University, is expected to create thousands of new jobs and to become a regional hub for research and innovation. Ideally located with easy access to major road networks and the nearby railway station, the site is also set to be of significant interest to major investors.
County Durham already has a strong innovation ecosystem and this has been bolstered further with recent Government backing to create an AI Growth Zone in the North East region. Aykley Heads will provide a high-quality environment to encourage the growth of existing businesses and attract others to the region. It will also help to balance out the city core by revitalising the area, creating a vibrant and exciting new employment destination. Ourselves and Durham County Council are incredibly proud to have signed the agreement with Durham University and look forward to progressing this shared long-term vision together.
The signing of the agreement is a major step forward and demonstrates the momentum we are building. Aykley Heads will deliver thousands of quality jobs for our residents and will be a significant driving force for County Durham's future economic growth, as well as that of the wider North East. We're really excited to be working with a world leading research institution in Durham University and Muse - with its impressive development track record. Add in the financial backing of the North East Combined Authority and what we have here is a powerful combination that will act as that important catalyst for future growth.
The development of Aykley Heads and the Durham Innovation District is a unique opportunity to catalyse inclusive, innovative and sustainable growth in our region, by attracting new investment and creating new, high-quality jobs. We look forward to working with Durham County Council to ensure our communities benefit most from this nationally significant project.
The Durham Innovation District is also backed by North East Mayor Kim McGuinness and the North East Combined Authority as one of the region's biggest and most significant investment opportunities. It has invested £9.2 million in the partnership as part of its programme to support economic growth and create opportunities for local people, while helping Durham enhance its role within the wider region.
