Blackstone, a prominent U.S. private equity firm, has received planning approval for its ambitious $13 billion “hyperscale” data centre project in North East England. The Northumberland County Council granted unanimous approval for the facility on Tuesday, with plans for the site in Blyth, Northumberland to span approximately 540,000 square metres.
The investment, which could reach up to £10 billion, will involve a large-scale data centre campus designed to meet the growing demand for data storage and cloud computing services. These “hyperscale” data centres are integral to supporting businesses, especially with the increased reliance on technologies like artificial intelligence.
The project is set to create substantial employment opportunities, with 1,200 long-term construction jobs and hundreds of positions for the operation of the centres. Additionally, up to 2,700 indirect jobs could be supported by the project. As part of the agreement, Blackstone will also contribute to a £110 million fund aimed at fostering economic growth and job creation in the region, particularly along the newly opened “Northumberland Line” railway.
This development follows the collapse of a previous plan for the site, which was originally designated for Britishvolt’s electric vehicle battery manufacturing plant before its closure last year. Blackstone’s initiative reflects the increasing demand for data centre capacity, driven by the surge in artificial intelligence and cloud computing, despite challenges in meeting this demand, according to recent research by CBRE Group.
