US equity firm Blackstone is set to buy the Northumberland Energy Park (NEP3) site to build a hyperscale data center.

Blackstone intends to purchase the site in Cambois, UK, on behalf of its data center landlord QTS.

Britishvolt Blackstone site Northumberland
Former Britishvolt site – Google Maps

The company acquired QTS in 2021 for $10bn, and last July committed to spend another $8bn on data centers due to a “once in a generation” AI boom.

In the proposal submitted to Northumberland Council, the cabinet is requested to amend the existing buy-back option on the NEP3 site and re-enter an agreement with Blackstone.

The site is currently under an agreement between Britishvolt and the county council. Britishvolt planned to build a £3.8 billion ($4.7bn) car battery factory on the site. However, the company fell into administration last year and plans collapsed, along with Britishvolt’s promise to create 3,000 jobs in the region.

The amendment would see the council buy back the land. In exchange, the council will be offered up to £110 million ($137m) as part of a growth and investment fund.

Council leader Cllr Glen Sanderson said: “Driving growth and jobs is a key priority for this council. Next week Cabinet will consider this really unique opportunity for Northumberland which offers a huge boost to the regeneration and renaissance of the local area.”

He added the project would see an investment of up to £10 billion ($12.5bn) in the region and would deliver more than 1,600 direct jobs, including 1,200 long-term construction jobs, and more than 2,700 indirect jobs.

The proposal adds that QTS’ data center facility would recover the jobs promised by Britishvolt and says the data center would benefit from renewable energy sources and access to cooling water in the area.

The land was formerly the coal yards of the old Blyth Power Station.

Blackstone acquired a majority stake in Dublin-based Winthrop Technologies earlier this month.