The U.K. government announced a deal with private alternatives giant Blackstone to create one of the biggest artificial intelligence centers in Europe, to be housed in Blyth, England.
Blackstone will invest £10 billion ($13.3 billion) in northeast England to create an AI data center, bringing with it 4,000 jobs and benefits to the local community of the town of Blyth, the government said late on Sept. 25.
The deal with the $1 trillion Blackstone was facilitated by the U.K.’s Office for Investment. Construction on the site is expected to begin next year.
Blackstone will also invest £110 million into a fund to support further skills training and transport infrastructure in the local community, the government said in a news release.
The agreement follows a proposed deal under the previous Conservative government, according to Bloomberg. The media outlet reported in April that Blackstone had been chosen to purchase a former Britishvolt site in Blyth, which had housed a power station.
Prime Minister Keir Starmer announced Blackstone’s investment during a trip to New York, where he was due to meet with Blackstone President Jon Gray on Sept. 25, the release said. The meeting was part of Starmer’s efforts “to rebuild Britain’s reputation as an investment destination in order to drive growth and create opportunities for British people,” the release said.
The U.K. in October is hosting its International Investment Summit, bringing together CEOs and investors at a showcase of the U.K.’s economic strengths, the release added.
“The number one mission of my government is to grow our economy, so that hardworking British people reap the benefits — and more foreign investment is a crucial part of that plan,” Starmer said in the release. “New investment such as the one we’ve announced with Blackstone today is a huge vote of confidence in the U.K., and it proves that Britain is back as a major player on the global stage, and we’re open for business.”
Blackstone’s Gray added in the same release that the U.K. “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 centers supporting 4,000 jobs. Blackstone is committed to Britain.”
