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BLACKSTONE CONFIRMS $13 BILLION INVESTMENT IN BRITAIN FOR AI DATA CENTRE

By Reuters
September 25, 20241:03 PM HSTUpdated a day ago
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Signage is seen at the Blackstone Group headquarters in New York City, U.S.,
January 18, 2023. REUTERS/Jeenah Moon/File Photo Purchase Licensing Rights,
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Sept 25 (Reuters) - U.S. private equity firm Blackstone (BX.N), opens new tab
has confirmed a 10 billion pound ($13.3 billion) investment for an artificial
intelligence data centre in northeast England, the British prime minister's
office said on Wednesday.
Construction of the AI data centre next year will create 4,000 jobs, including
1,200 roles dedicated to the construction of the site, Prime Minister Keir
Starmer said during his visit in New York.
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Energy-intensive data centres have become a rare growth area for commercial
landlords like Blackstone, as investors have been roiled by tumbling prices of
other assets such as emptying post-pandemic offices.
In April, Blackstone had proposed constructing the "hyperscale" data centre on a
derelict site in Blyth, Northumberland, that had previously been earmarked for a
major electric vehicle battery factory.
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Jon Gray, president and chief operating officer of Blackstone, confirmed the
investment and its economic impact.
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.
As part of the new agreement, Blackstone will also contribute 110 million pounds
to a local fund aimed at boosting skills training and improving transportation
infrastructure in Blyth, the prime minister's office added.

($1 = 0.7508 pounds)


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Reporting by Surbhi Misra in Bengaluru; Editing by Shounak Dasgupta and Lisa
Shumaker

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