Blackstone has confirmed it plans to spend £10 billion ($13.3bn) developing an AI data center on a derelict industrial site in Blyth, UK.
The plot of land, known as Northumberland Energy Park, had been earmarked for a battery factory by now-defunct electric vehicle battery maker Britishvolt. Blackstone announced earlier this year it planned to purchase the site and build a data center through its QTS subsidiary.
Now it has revealed it will spend up to £10bn ($13.3bn) on the site. Specifications have not been revealed, but work is expected to start next year. Blackstone said the project would create 4,000 jobs, including 1,200 construction roles.
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 centers supporting 4,000 jobs. Blackstone is committed to Britain.”
News of the investment has been welcomed by UK Prime Minister Keir Starmer. He said: “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 decision to buy the land for the data center was made before Starmer’s party took office in July. Nonetheless, the new government has shown a commitment to growing the data center industry in the UK, promising to change rules to make it easier for large developments to gain planning permission. Immediately following July’s election, Deputy Prime Minister Angela Rayner pledged to reopen two planning applications for data centers that had been rejected by local authorities. One of these, a 96MW hyperscale facility planned for Abbots Langley, Hertfordshire, will be subject of a public inquiry next month.
UK data centers have also been designated critical national infrastructure by the new government, meaning operators can seek greater government support in case of emergencies.
The government has also actively been courting data center operators and investors ahead of an investment summit scheduled for October, where Blackstone and other major players in the industry will be in attendance.
Blackstone is the world’s largest asset manager. In July it revealed its data center pipeline is valued at $70bn, on top of existing assets worth $55bn. It acquired QTS in 2021.
