Blackstone nears Britishvolt site purchase for data centre

Blackstone is in talks to buy the site formerly earmarked for Britishvolt’s £3.8bn gigafactory in Northumberland for a massive data centre development. Blackstone has entered into a contract to buy the site at Cambois in Blyth, formerly known as Blyth Power Station, with joint LPA receivers at Begbies Traynor Group. The transaction marks a new chapter for the 235-acre site, which was more recently used as the base of failed electric vehicle battery business BritishVolt. The LPA receivers said the agreement was reached after a “complex” 15-month sale process. Blackstone is proposing a “major hyperscale cloud and/or AI data centre campus” to be developed by its data centre landlord QTS. The plans show the project would represent an inward investment of up to £10bn, with a potential further £5bn-10bn from tenant investment. The private equity firm’s funds have filed a proposal for Northumberland County Council to amend the council’s right to buy back the site. In return, the council would be paid up to £110m. Blackstone has proposed the sum be used to create a growth and investment endowment fund for projects in the county. Councillors will vote on the proposal on 23 April. Bob Maxwell of Begbies Traynor said: “From a difficult situation, the future sale will ensure a very bright future for the site. “The process of securing a dependable buyer who has a clear, deliverable plan for the long-term use of this strategically important land asset was crucial after the failure of the last business at the site, and was a key factor in gaining the approval of Northumberland County Council, who held options on the site. “This transaction ensures that a well-funded and respected new owner can bring the enterprise and employment to the site that it deserves, and will be a huge boost for the whole region. Its scale and location make it perfect as the location for a European data hub, and the plans put forward will hopefully kick-start an entire tech industry cluster in the North East from the site.” Photo by Andy Lauwers/Shutterstock