Blackstone Group, a US private equity firm, is on the verge of acquiring the 95-hectare (235-acre), former Britishvolt gigafactory site near Cambois in Northumberland. What was once envisioned as a hub for electric vehicle battery production is now slated to become one of Europe’s largest data centres.
The proposed deal, which involves an investment of up to £10 billion according to County Council documents, will reportedly breathe new life into the region, creating a ripple effect of economic opportunities and job prospects.
Northumberland County Council, in discussions with Blackstone, sees this as a monumental opportunity for regeneration, signalling a shift towards the digital economy and positioning the area at the forefront of technological advancements.
Council leader Glen Sanderson said the project “offers a huge boost to the regeneration and renaissance of the local area”.
He also said the project has the potential to deliver “over 1,600 direct jobs, including 1,200 long-term construction jobs, and over 2,700 indirect jobs over the course of the development”.
If the project is agreed, Sanderson shared: “The council would receive up to £110m in exchange for amending the buy-back option on the NEP3 land site and use the proceeds to establish a fund which will drive investment, including the economic corridor along our fantastic, new Northumberland Line.”
The shift from a manufacturing hub to a data infrastructure centre draws striking parallels. Both require vast spaces, robust infrastructure and access to renewable energy sources. By leveraging these existing attributes, Blackstone aims to position the site as a cornerstone of Europe’s digital infrastructure, hoping to attract major tech players like Microsoft, Google, Amazon, or Meta to the site.
In his Spring Budget speech on data centres and UK investment, Chancellor Jeremy Hunt highlighted recent developments: “Since the Autumn Statement, Nissan announced two new electric car models, Microsoft and Google unveiled data centres worth over £3bn… and the Global Investment Summit spurred £30bn in investments.”
Despite the promising strides and hefty investments in data centres in the UK, obstacles persist before the realisation of Blackstone’s data site such as securing planning permission, ensuring adequate power supply and meeting connectivity requirements – all critical factors that will determine the project’s feasibility.
As negotiations reach a crucial juncture, all eyes are on the forthcoming decision by Northumberland County Council.
