Conservative-led Northumberland County Council have secured a major investment in the county as an agreement has been reached to build one of Europe’s largest data centres in the county. The site, previously earmarked for the unsuccessful battery startup BritishVolt, will instead be sold to Blackstone Group, raising up to £110 million which will directly benefit taxpayers in Northumberland.
The deal is one of the biggest ever private investments into artificial intelligence in the UK. It could lead to investment of up to £10 billion into the area, creating up to 1600 direct jobs with thousands more in supply chain and construction.
Blackstone Group will buy the 235-acre site near Cambois in Northumberland for £110 million after the council invoked a ‘buy-back clause’, allowing them to take back control of the site for £4m, the price BritishVolt paid. The deal follows extensive work by Northumberland Conservatives to ensure the site would still receive major investment following the failure of BritishVolt to raise the capital needed to deliver what they promised for the area.
Council Leader, Cllr Glen Sanderson said:
“Driving growth and jobs is a key priority for this Council. Next week, Cabinet will consider this really unique opportunity for Northumberland which offers a huge boost to the regeneration and renaissance of the local area.
"The project would represent a significant inward investment of up to £10 billion, putting our County at the forefront of developments in the digital economy, and delivering 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 agreed, 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 in the economic corridor along our fantastic, new Northumberland Line.
“Through the Council’s investment company, Advance, we have worked tirelessly to make this site such an attractive place for global companies to do business.
“We look forward to considering this opportunity at Cabinet next week.
“Northumberland is indeed a Land of Great Opportunities and this potentially significant investment opportunity underlines this.”
Blyth Valley MP Ian Levy said:
“I have worked closely with the Council and Government to ensure the best possible outcome for the Blyth Estuary, South East Northumberland and the wider region.
“The initial construction jobs and then the longer-term jobs on the site will continue the transformation of our area and I will be doing everything I can to make sure that as many of these jobs as possible go to local people.
“The spin offs for education and skills development will be outstanding. This is a great example of a Conservative Council working with a Conservative Government to bring opportunity and transform an area and I am very proud to have been able to play a part in this.”
Blackstone's bid for the site will be considered by the County Council's Conservative cabinet next week (Tuesday 23rd April 2024).
