Keir Starmer is set to reveal plans for a £10bn artificial intelligence (AI) datacentre in north-east England, expected to bring 4,000 jobs to the region. The data center, funded by private equity giant Blackstone, will be constructed in Blyth, Northumberland.
The data center deal has been in progress for several months. Blackstone, an American investment company, acquired the Blyth site in April after the collapse of the Britishvolt battery startup.
That failed project was originally set to create 3,000 jobs. Starmer is keen to position the new AI facility as a key element of his government’s commitment to economic growth, touting it as a “vote of confidence in the UK.”
Speaking ahead of a series of meetings with international business leaders in New York, Starmer said: “The No 1 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.”
Ties to High-Profile Trump Supporter
While the investment is being hailed as a triumph, it is not without controversy. Blackstone’s founder and chief executive, Stephen Schwarzman, is a well-known supporter of former US President Donald Trump. In May, Schwarzman confirmed his backing for Trump’s 2024 presidential run. Despite this political affiliation, Starmer is moving ahead with the deal, highlighting its potential economic benefits for the UK.
Schwarzman, who earned an estimated $896m (£670m) in 2023, has long been a prominent figure in global finance. Under his leadership, Blackstone has become one of the world’s largest private equity firms.
However, it is worth noting that Jon Gray, Blackstone’s chief operating officer and a key figure in this investment, is a supporter of current US President Joe Biden.
Construction on the Blyth site is scheduled to begin next year. Once complete, the AI data center will store vast amounts of data essential for powering artificial intelligence technologies, as well as the information generated by AI systems.
Alongside the data center, Blackstone has committed to investing £110m into a fund that will support skills training and improve local transport infrastructure, further benefiting the region.
Starmer’s international outreach extends beyond the US. The prime minister is set to visit Brussels next week in a bid to “reset” relations with the European Union.
European Commission President Ursula von der Leyen announced the upcoming meeting on social media, following her encounter with Starmer at the UN General Assembly in New York.
“Good to see you in the margins of UN general assembly,” von der Leyen tweeted. “Looking forward to welcoming you at the EU Commission in Brussels next week to discuss the reset of EU-UK relations.”
Labour Courts Business Leaders
Meanwhile, Labour is increasing its efforts to attract investment. At the Labour Party conference last week, more than 500 business leaders attended the party’s biggest-ever business day. Representatives from companies including Uber, ExxonMobil, Shell, and Citigroup were present, along with executives from Blackstone and JP Morgan.
Starmer used the conference to reaffirm Labour’s pro-business stance, urging business leaders to bring their concerns directly to Downing Street. He also outlined Labour’s industrial strategy and promised to consult further on taxation and workers’ rights reforms.
However, Labour’s plans to raise taxes on private equity firms have faced resistance from industry groups, particularly around the proposed changes to capital gains tax for private equity workers.
With an international investment summit scheduled for October, Starmer is expected to continue his efforts to secure further foreign investments and ensure the UK remains competitive on the global stage.
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