Blackstone to build Europe’s largest AI data centre in the UK

The deal, facilitated by the Office for Investment, will lead to the construction of Europe's largest AI data centre in Blyth, Northumberland, and is expected to create over 4,000 jobs.

With construction set to begin next year, the data centre will not only store vast amounts of data required to power AI systems but also support the UK’s growing AI infrastructure. Of the 4,000 jobs expected to be created, 1,200 will be tied directly to the construction of the facility. This investment marks a major win for the North East, particularly the local community in Blyth, which faced significant economic challenges following the collapse of BritishVolt.

Blackstone has committed to further investing £110 million into a local fund aimed at supporting skills training and improving transport infrastructure in the region. This investment is expected to provide long-term benefits for the area, helping to regenerate the local economy.

Prime Minister Keir Starmer emphasised the importance of foreign investment in his government’s strategy for economic growth. He stated: “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.”

This investment is also seen as a key step in strengthening the UK's standing as a destination for technology and AI development. The country already hosts the highest number of data centres in Western Europe, and just last month, the UK government officially designated data centres as part of its ‘Critical National Infrastructure’ – the first such designation in nearly ten years. This move provides further assurance to businesses that the UK is a secure and attractive location for investment.

Jon Gray, President and Chief Operating Officer of Blackstone, also commented on the decision, stating: “The UK is a top investment market for Blackstone because of its powerful 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. This includes a projected £10 billion investment to build one of Europe’s largest hyperscale data centres supporting 4,000 jobs. Blackstone is committed to Britain.”

The announcement comes ahead of the UK’s International Investment Summit, scheduled for October, where hundreds of CEOs and global investors are expected to convene. The event aims to showcase the UK's economic strengths and solidify its reputation as an investment hub.

This latest investment also reinforces the already strong trade relationship between the UK and the US. Bilateral trade between the two nations is currently valued at over £340 billion, making the US the UK's largest single trading partner. Both countries benefit from deep economic ties, with over 1.2 million Americans employed by UK-owned businesses and 1.3 million British workers employed by US companies. In 2023 alone, the UK and the US invested more than $1.2 trillion in each other’s economies, spanning key sectors such as financial services, green infrastructure, real estate, and technology.