Blackstone to invest $13.3B in AI data center in the UK

Blackstone had in April proposed to build a hyperscale data center in Blyth.

“We are making significant investments in essential infrastructure like this data center, which will power the digital economy while supporting thousands of jobs,” Jon Gray, president and chief operating officer of Blackstone said adding that the UK remains a key market for the firm.

Blackstone has also pledged £110 million towards a local fund in Blyth, aiming to support skills training and improve transport infrastructure, providing a direct boost to the community that was impacted by BritishVolt’s collapse, the statement added.

“The investment will significantly bolster the UK’s appeal as a destination for AI and data center development. The presence of a large-scale, state-of-the-art AI data center will attract other technology companies, researchers, and investors to the UK,” Mittal added.

Rebuilding critical infrastructure

The investment comes as the UK government recently designated data centers as “Critical National Infrastructure,” a move intended to provide greater security and assurance to international investors in the country’s growing technology sector.

The new government led by the Labour Party had talked about removing planning barriers to data centers before the election too, writing in its manifesto: “We will ensure our industrial strategy supports the development of the Artificial Intelligence (AI) sector [and] removes planning barriers to new datacentres.”