- Blackstone confirms $13.3 billion investment in an AI data centre in Blyth, creating 4,000 jobs, revitalising a derelict site previously meant for an EV battery factory.
- The investment includes $145.7 million for local skills and infrastructure, marking a significant economic boost following Britishvolt’s collapse, aligning with commercial growth in data centres.
OUR TAKE
This investment by Blackstone marks a strategic move towards tech-driven economic growth, providing a significant boost to Blyth’s local economy and job market. It reflects a broader trend of diverting capital towards promising tech sectors like AI, especially in regions previously hit by industrial setbacks, and underscores the UK’s potential as a tech hub.
–Vicky Wu, BTW reporter
What happened
US private equity firm Blackstone has confirmed a $13.3 billion investment to construct an artificial intelligence data centre in northeast England, according to the British prime minister’s office. The project, set to commence construction next year, will generate approximately 4,000 jobs, with 1,200 roles specifically dedicated to the building phase. Prime Minister Keir Starmer announced the investment during his trip to New York, highlighting the economic benefits to the region. Data centres, known for their high energy consumption, represent a burgeoning sector for commercial property managers like Blackstone, amidst a challenging market for other assets such as post-pandemic office spaces.
In April, Blackstone proposed developing a ‘hyperscale’ data centre on a disused site in Blyth, Northumberland, which was initially intended for an electric vehicle battery factory. The original plan for the site suffered a setback when Britishvolt, a UK start-up, went bankrupt last year, thwarting the nation’s aspirations for a domestic battery manufacturing industry. Jon Gray, Blackstone’s President and Chief Operating Officer, affirmed the investment and its anticipated economic impact.
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Why it’s important
This investment underscores the growing importance of AI infrastructure and the shift in focus towards technology-driven projects that can stimulate regional economies. The creation of thousands of jobs and the establishment of a cutting-edge facility could transform Blyth, bringing much-needed employment opportunities and boosting the local economy.
Additionally, Blackstone’s commitment to contribute $145.7 million to a local fund designed to enhance skills training and improve transportation infrastructure demonstrates a comprehensive approach to community development. The project signals confidence in the UK’s potential to develop as a hub for AI and data centre operations, following the disappointment of the Britishvolt collapse.
As part of a wider trend, this investment illustrates how global investment firms are seeking growth areas amidst changing market dynamics, choosing to support projects that promise long-term returns and technological advancement.
