The British government has announced private equity giant Blackstone will invest £10 billion ($AU19.523 billion) in a data centre for artificial intelligence in the north-east of England.
With the Office for Investment's help, Blackstone will create Europe's biggest AI data centre, boosting the UK's global leadership in the AI sector and driving local jobs.
A total of 4,000 jobs will be created, including 1,200 for construction in Blyth, Northumberland. In the next year, construction on the site will begin, with the data centres storing the massive amount of data needed to power AI systems and to process their output.
The local community in Blyth - which suffered due to the failure of BritishVolt - will also benefit directly from the investment, with Blackstone investing £110 million in a fund to support skills training and transport.
In Western Europe, the UK has more data centres than anywhere else, and just last month, the government labelled them as 'Critical National Infrastructure' for the first time in almost a decade to make sure businesses know it's safe to invest and develop data centers in the UK.
Britain's Prime Minister Keir Starmer said: "The number one 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."
Jon Gray, President and Chief Operating Officer of Blackstone, said: "The UK is a top investment market for Blackstone because of its powerful combination of talent and innovation along with a highly transparent legal system. We are making significant commitments to building social housing, facilitating the energy transition, growing life sciences companies and developing critical infrastructure needed to fuel the digital economy. This includes a projected £10 billion investment to build one of Europe’s largest hyperscale data centres supporting 4,000 jobs. Blackstone is committed to Britain."
During his visit to New York, the Prime Minister will meet Blackstone President Jon Gray in order to rebuild Britain's reputation as an investment destination.
There will be hundreds of leading CEOs and investors attending the UK's International Investment Summit in October with an ambitious programme to showcase the UK's economic strength.
The summit will rebuild Britain's reputation as an investment destination to drive growth, create new jobs, and cement the government's enduring partnership with businesses.
With today's investment, the UK will also strengthen its bilateral trading relationship with the US, which is already worth over £340 billion.
1.2 million Americans work for UK-owned companies and 1.3 million Brits work for US-owned companies every day. In the past year, the US and the UK invested over $1.2 trillion in each other's economies, including in financial services, green infrastructure, real estate, and technology.