Blackstone confirms £10 billion investment in Britain for AI data centre

US PRIVATE equity firm Blackstone has confirmed a £10 billion (S$17.2 billion) investment for an artificial intelligence data centre in northeast England, the British prime minister’s office said on Wednesday.

Construction of the AI data centre next year will create 4,000 jobs, including 1,200 roles dedicated to the construction of the site, Prime Minister Keir Starmer said during his visit in New York.

Energy-intensive data centres have become a rare growth area for commercial landlords like Blackstone, as investors have been roiled by tumbling prices of other assets such as emptying post-pandemic offices.

In April, Blackstone had proposed constructing the “hyperscale” data centre on a derelict site in Blyth, Northumberland, that had previously been earmarked for a major electric vehicle battery factory.

Jon Gray, president and chief operating officer of Blackstone, confirmed the investment and its economic impact.

Previous plans for the site fell through when UK startup Britishvolt collapsed last year, in a blow to the country’s hopes of building a home-grown battery industry.

As part of the new agreement, Blackstone will also contribute £110 million to a local fund aimed at boosting skills training and improving transportation infrastructure in Blyth, the prime minister’s office added. REUTERS