£10bn Boost for UK Economy: Blackstone Invests in Major AI Data Centre in Northumberland

In a landmark investment deal, US-based investment giant Blackstone has committed £10bn to the construction of one of Europe’s largest AI data centres in Blyth, Northumberland. The project is set to provide a significant boost to the UK economy, creating over 4,000 jobs, with 1,200 roles specifically tied to the construction phase.

This ambitious development will occupy the site originally planned for the BritishVolt battery plant, repurposing the space to house a state-of-the-art data centre critical to the burgeoning artificial intelligence sector. The facility will play a key role in managing the vast data sets required for AI operations, reinforcing the UK’s status as a global leader in AI technology and digital infrastructure.

Construction is expected to begin next year, alongside a £110m investment by Blackstone into a local fund to support skills training and upgrade transportation infrastructure in Blyth. The initiative aims to create lasting benefits for the local community while enhancing the region’s appeal as a tech and innovation hub.

UK Prime Minister Keir Starmer has heralded the investment as a crucial step in driving economic growth, saying: “The number one mission of my government is to grow our economy so that hardworking British people reap the benefits – and foreign investment is a key part of that plan.”

This announcement follows Labour’s recent move to designate data centres as Critical National Infrastructure, demonstrating the government’s commitment to fostering secure environments for large-scale technological developments. By prioritising these projects, the UK seeks to position itself at the forefront of digital innovation and attract further global investment.

Jon Gray, President and Chief Operating Officer of Blackstone, highlighted the UK’s investment appeal: “The UK is a top investment market for Blackstone due to its rich combination of talent and innovation, supported by a highly transparent legal system. This £10bn investment reaffirms our commitment to the UK, contributing to critical digital infrastructure and supporting the transition to a digital economy.”

This agreement also serves to strengthen the UK-US trading relationship, which is already valued at over £340bn annually. With more global investments on the horizon, Starmer emphasised the importance of securing foreign partnerships: “Britain is back as a major player on the global stage, and we are open for business.”

As the UK prepares to host the International Investment Summit next month, the Blackstone deal is a clear indicator of the country’s growing appeal to foreign investors. The new AI data centre will not only contribute to the UK’s digital and economic future but also solidify its position as a global hub for AI and technology innovation.