Private equity powerhouse Blackstone has confirmed a £10 billion (approximately $13.32 billion) investment to establish an artificial intelligence data center in Northeast England, as announced by the British Prime Minister’s office on Wednesday.
The construction of the AI data center is set to begin next year and is projected to create around 4,000 jobs, including 1,200 positions specifically for the construction phase. Prime Minister Keir Starmer highlighted the project during his visit to New York.
Data centers, particularly those focused on AI, have emerged as a rare growth opportunity for commercial landlords like Blackstone, especially amid declining prices in other sectors, such as vacant office spaces post-pandemic. Earlier this year, Blackstone proposed developing a “hyperscale” data center on a previously derelict site in Blyth, Northumberland, which had initially been designated for a major electric vehicle battery factory.
Jon Gray, Blackstone’s President and COO, affirmed the significance of this investment for the local economy. The site had faced setbacks when UK startup Britishvolt collapsed last year, hindering efforts to establish a domestic battery industry.
Additionally, as part of the new investment agreement, Blackstone will allocate £110 million to a local fund dedicated to enhancing skills training and improving transportation infrastructure in Blyth, according to the Prime Minister’s office.
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