The UK government plans to set up the ‘biggest AI data centre in Europe’ with support from Blackstone, a major US alternative investment company.
Blackstone will invest £10bn in the project, which forms part of the Labour Party’s ambitions to increase AI investment and roll out data centres across the country, as detailed in its 2024 election manifesto.
The data centre will be located in Blyth, Northermumberland, in the North East of England. Blyth is a traditional Labour Party stronghold, having been a longstanding home to coal mining and shipbuilding industries, which have now declined.
With the local consistency having been won back from the Conservatives during the July election, Labour may have chosen this location as a means to retain its traditional supporter base in the town moving forward. The government states that 4,000 jobs will be created, including 1,200 in construction, and that Blackstone will contribute £110m to a local training and transport fund.
The plans of course also fall in line with Prime Minister Keir Starmer’s government’s aforementioned goals to foster a national tech industry, however, an ambition similarly held by its Conservative predecessors.
“The UK is a top investment market for Blackstone because of its powerful combination of talent and innovation along with a highly transparent legal system,” said Jon Gray, President and COO of Blackstone.
“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 £10bn investment to build one of Europe’s largest hyperscale data centres supporting 4,000 jobs. Blackstone is committed to Britain.”
The UK is home to an extensive AI sector which has become a significant target for investment in recent years. In the fintech realm, some quarters have seen AI trump payments as a target for investors.
The potential AI has for the finance sector has not been lost on this industry’s stakeholders, nor the government. At the Payment Expert Summit last week, for example, speakers discussed how AI can be leveraged in areas like fraud prevention and anti-money laundering (AML).
Growing this sector has been an ambition for the government for some time. Under Rishi Sunak, the government invested over £500m in technology, specifically highlighting AI as a crucial area.
Labour has identified creating data centres as crucial to taking British AI forward. THe company has classed these data centres as ‘Critical National Infrastructure’ as a means to ensure the UK is secure enough to invest and develop said centres.
PM Starmer remarked: “The number one mission of my government is to grow our economy, so that hard-working British people reap the benefits – and more foreign investment is a crucial part of that plan.
“New investment such as the one we’ve announced with Blackstone today is a huge vote of confidence in the UK and it proves that Britain is back as a major player on the global stage and we’re open for business.”