US private equity firm Blackstone has confirmed a £10 billion ($13.3 billion) investment to build an artificial intelligence data centre in northeast England, according to the British prime minister’s office.
The project, set to begin construction next year, will create 4,000 jobs, including 1,200 positions focused on building the facility, Prime Minister Keir Starmer announced during his visit to New York.
Energy-intensive data centres have emerged as a rare growth sector for commercial landlords like Blackstone, amidst falling asset prices in areas like office spaces, which have been impacted by the post-pandemic shift.
In April, Blackstone proposed constructing the “hyperscale” data centre on a derelict site in Blyth, Northumberland, previously intended for an electric vehicle battery factory.
Jon Gray, Blackstone’s president and COO, confirmed the investment and highlighted its economic benefits.
The site’s previous plans were scrapped after the collapse of UK startup Britishvolt last year, dashing hopes for a domestic battery industry. Under the new deal, Blackstone will also invest £110 million in a local fund to enhance skills training and improve transportation infrastructure in Blyth.
