Private equity giant Blackstone (BX.N) has proposed building a multi-billion pound 'hyperscale' data centre in northern England, according to documents published by a local council on Monday.
The world's largest commercial landlord has proposed building the major data centre on a derelict site in Blyth, Northumberland, that had previously been earmarked for a major electric vehicle battery factory, the documents show.
Previous plans for the site fell through when UK startup Britishvolt collapsed last year, in a blow to the country's hopes of building a home-grown battery industry.
Power-hungry data centres have proved a rare bright spot for commercial landlords like Blackstone, as investors have been roiled by tumbling prices of other assets such as emptying post-pandemic offices.
Blackstone's project could lead to investment of up to 10 billion pounds ($12.5 billion) and create hundreds of jobs, the council document said.
Northumberland County Council will vote on Blackstone's proposal on April 23, which would entail the local authority amending an existing buyback agreement it has on the site.
In return, the council would be paid 110 million pounds over time, which it said it would use to establish a fund to create further jobs in the region.
Blackstone has held initial talks with the National Grid and other power providers about how to secure the energy to run the project, the document showed.
"Blackstone and (data centre arm) QTS have the capital, expertise and track record required to deliver on growing demand for data centre infrastructure," a Blackstone spokesperson said.
($1 = 0.8027 pounds)
