Blackstone Confirms $13 Billion Investment in AI Data Center in Britain, Reports Reuters

U.S. private equity firm Blackstone has announced a £10 billion ($13.3 billion) investment in an artificial intelligence data center located in northeast England, according to the British prime minister’s office.

The construction of the AI data center is set to begin next year and is expected to generate 4,000 jobs, with 1,200 specifically dedicated to the construction process, as Prime Minister Keir Starmer highlighted during his visit to New York.

Energy-demanding data centers have emerged as a rare growth opportunity for commercial landlords like Blackstone, particularly as the value of other assets, such as vacant post-pandemic office spaces, continues to decline.

Earlier this year, Blackstone had proposed developing the “hyperscale” data center on a previously abandoned site in Blyth, Northumberland, which was initially designated for a significant electric vehicle battery factory.

Jon Gray, President and Chief Operating Officer of Blackstone, affirmed the investment and its anticipated economic benefits.

Previous plans for the site did not materialize following the collapse of UK startup Britishvolt last year, which had dampened the country’s aspirations for establishing a domestic battery industry.

Additionally, as part of the agreement, Blackstone will contribute £110 million to a local fund aimed at enhancing skills training and improving transportation infrastructure in Blyth.