Blyth, a town in Northumberland, UK, is set to host Europe’s largest datacentre dedicated to artificial intelligence (AI) workloads.
This ambitious £10 billion project, financed by the US investment firm Blackstone in collaboration with the UK government’s Office for Investment, is expected to generate over 4,000 jobs in the area. Construction of the facility is slated to begin in 2025, and it will serve as a repository for the data and systems necessary to support AI technologies.
Prime Minister Keir Starmer announced the project during his visit to New York, where he is promoting the UK as an attractive destination for foreign investment. He stated, “The primary goal of my government is to enhance our economy, ensuring that hardworking British citizens benefit. Increased foreign investment is a vital component of this strategy.” He emphasized that this investment from Blackstone reflects a strong endorsement of the UK, reaffirming its position as a significant player on the global stage, and highlighting its openness to business.
Additionally, £110 million of the project funding is earmarked by Blackstone to improve Blyth’s transport infrastructure and skills training, ensuring that the local community can benefit economically from the development.
Jon Gray, Blackstone’s President and Chief Operating Officer, highlighted the UK as a key investment market for the firm. He remarked, “We’re making substantial investments in social housing, energy transition, life sciences, and essential infrastructure to support the digital economy, including the projected £10 billion for one of Europe’s largest hyperscale datacentres that will create 4,000 jobs. Blackstone is committed to Britain.”
This announcement follows a series of proactive measures by the new government to bolster the UK datacentre sector. Since taking office in early July, the government has promised to revise planning regulations for datacentres to expedite new developments. They have initiated consultations on this initiative and are reviewing multiple datacentre projects previously denied planning permission, including a £3.75 billion hyperscale datacentre project near South Mimms service station in Hertfordshire.
Earlier this month, the government also designated datacentres as Critical National Infrastructure, acknowledging their crucial role in sustaining the UK’s digital economy.