Blackstone acquires former Britishvolt site for major data centre project

The site, previously intended for a significant battery manufacturing gigafactory before falling into administration, is now slated to become a state-of-the-art AI data centre complex, heralding what could be Europe's largest data centre once completed.

The acquisition was finalised on a Wednesday, with Northumberland County Council securing a buy-back arrangement should the development not proceed as planned. This strategic move aims to ensure long-term benefits and safeguard the council’s interests. Council Leader Glen Sanderson heralded the deal as "tremendous news," highlighting its potential to catalyse extensive economic rejuvenation in the area.

The planned development by Blackstone, in partnership with its data subsidiary QTS, is expected to channel up to £10 billion into the local economy. This investment will significantly bolster local business investments, thanks to an infusion of £110 million into the council’s coffers, a deal that saw the council relinquishing a previous buy-back agreement on the land.

The site, also known as Northumberland Energy Park Phase 3 or NEP 3, is expected to create more than 1,600 direct jobs, including 1,200 in long-term construction roles. Additionally, the project is projected to generate over 2,700 indirect jobs, thereby supporting a broader spectrum of employment opportunities within the region.

This initiative marks a pivotal shift from manufacturing to high-tech infrastructure development, aligning with global trends towards increasing data consumption and the need for advanced data management solutions driven by AI technologies. The development not only promises to transform a previously industrial site but also positions Northumberland as a key hub in the European technological landscape.

Council leader Sanderson expressed pride in this achievement, stating it represents the "largest ever" investment in the area, signifying a major milestone in the council's efforts to foster substantial economic growth and technological advancement​.