Blackstone invests £10bn in North East AI data centre scheme

American private investment giant Blackstone has announced a £10bn plan to create a large artificial intelligence data centre in the North-east.

The new facility will be built in Blyth, Northumberland, where plans had previously been in place for a £300m battery gigafactory to be built by ISG.

However, the client on that scheme, Britishvolt, went into administration at the beginning of 2023.

The fresh investment into Blyth was announced by British prime minister Keir Starmer in New York yesterday.

According to the government, the scheme will create more than 4,000 jobs, including 1,200 roles dedicated to building the site.

Blackstone said it would invest £110m into a fund supporting skills training and transport infrastructure in the area.

Starmer said: ”The number one mission of my government is to grow our economy, so that hard-working British people reap the benefits – and more foreign investment is a crucial part of that plan.

“New investment such as the one we’ve announced with Blackstone today is a huge vote of confidence in the UK and it proves that Britain is back as a major player on the global stage and we’re open for business.”

>> Read more: Fixed price jobs and Britishvolt failure send NG Bailey tumbling to £25m loss

>> Read more: Britishvolt buyer yet to make final payment under £8.6m rescue deal

Jon Gray, president and chief operating officer of Blackstone, said: “The UK is a top investment market for Blackstone because of its powerful combination of talent and innovation along with a highly transparent legal system.  

“We are making significant commitments to building social housing, facilitating the energy transition, growing life sciences companies and developing critical infrastructure needed to fuel the digital economy. 

“This includes a projected £10 billion investment to build one of Europe’s largest hyperscale data centres supporting 4,000 jobs. Blackstone is committed to Britain.”

Construction is set to begin next year.