U.S. private equity giant Blackstone has officially announced a £10 billion ($13.3 billion) investment to establish an artificial intelligence data center in northeast England, as confirmed by the British Prime Minister’s office on Wednesday. Prime Minister Keir Starmer, during his New York visit, highlighted that the construction, set to begin next year, will generate approximately 4,000 jobs, including 1,200 specifically for the site’s development.
In a market where traditional commercial assets face declining values, energy-intensive data centers have emerged as a key growth area for firms like Blackstone. The proposed “hyperscale” facility will be built on a previously abandoned site in Blyth, Northumberland, which was initially designated for a major electric vehicle battery factory before the project’s collapse due to the failure of UK startup Britishvolt.
Blackstone’s President and COO Jon Gray emphasized the investment’s potential economic benefits, noting the positive impact on local employment and infrastructure. As part of the agreement, Blackstone will also allocate £110 million to a fund aimed at enhancing skills training and upgrading transportation in Blyth.
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