The deal with US investment company Blackstone, facilitated by the Office for Investment, will create the biggest AI data centre in Europe.
Over 4,000 jobs will be created as a result, including 1,200 roles dedicated to the construction of the site in Blyth, Northumberland. Construction on the site is expected to begin next year.
In a statement, Jon Gray, president and COO of Blackstone, said the UK is a top investment market for Blackstone because of its 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,” he said. “This includes a projected £10bn investment to build one of Europe’s largest hyperscale data centres.”
As part of the deal, Blackstone confirmed it will invest £110m into a fund to support further skills training and transport infrastructure in the area.
The UK is home to the highest number of data centres in Western Europe. The government recently classed data centres as ‘Critical National Infrastructure’ in the first designation in almost a decade to provide greater reassurance to businesses that the UK is a secure place to invest in and develop data centres.
Prime Minister Keir Starmer said: “The number one mission of my government is to grow our economy, so that hard-working British people reap the benefits – and more foreign investment is a crucial part of that plan.
“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.”
The new investment also bolsters the UK’s bilateral trading relationship with the US which is worth over £340bn, making the US Britain’s largest single trading partner.
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