U.S private equity firm Blackstone has confirmed a 10 billion pound investment for an artificial intelligence data center in northeast England, the British prime minister’s office said on Wednesday.
That would create 4,000 jobs next year, including 1,200 dedicated to the site’s construction, according to the Prime Minister Keir Starmer during his visit in New York.
Energy hungry data centers have become one of the few bright spots in growth for commercial landlords such as Blackstone amid a rout by investors concerned about other assets, such as offices emptied by the pandemic.
In April Blackstone had proposed building the “hyperscale” data center on a derelict site in Blyth, Northumberland, that had previously been earmarked for a major electric vehicle battery factory.
Jon Gray, president and chief operating officer of Blackstone said: “We are pleased to confirm this investment and its contribution to the economy.
Previous plans for the site fell through when UK startup Britishvolt collapsed last year, in a blow to the country’s hopes of building a homegrown battery industry.
Under the new agreement, Blackstone will also provide 110 million pounds to a local fund aimed at boosting skills training and improving transportation infrastructure in Blyth, the prime minister’s office added.
