Blackstone will invest £10 billion to create “the biggest AI data centre in Europe”, in the North East of England.
More than 4,000 jobs will be created including 1,200 construction roles at the site in Blyth, Northumberland, the prime minister has said.
The US investment firm will also invest £110 million in the local community to support skills training and transport infrastructure in the area, which suffered after the failure of BritishVolt.
The site had previously been earmarked for a £300 million gigafactory, to be built by ISG, according to Building.
The UK hosts the highest number of data centres in Western Europe and, to drive international investment in the future, the government recently classed data centres as ‘Critical National Infrastructure’.
“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,” said prime minister Starmer.
“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.”
Blackstone’s investment also bolsters the UK’s bilateral trading relationship with the US, which is currently worth more than £340 billion, making America Britain’s largest single trading partner.
Construction of the new AI data centre in Blyth is expected to begin next year.
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.”
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