Blackstone (NYSE: BX), the U.S. private equity firm, has confirmed a 10 billion pound ($13.3 billion) investment for an artificial intelligence data center in northeast England, the British prime minister’s office said on Wednesday.
Construction of the AI data center 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 to New York.
Energy-intensive data centers 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 (NYSE: BX) had proposed constructing the “hyperscale” data center 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 pounds to a local fund to boost skills training and improve transportation infrastructure in Blyth, the prime minister’s office added.
($1 = 0.7508 pounds)
(Source: ReutersReuters)
