Keir Starmer, the leader of the Labour Party, is set to announce the creation of a £10bn AI datacentre in north-east England, bringing 4,000 jobs to the area. The project, funded by private equity firm Blackstone, is expected to be a major boost for the UK economy and is seen as a vote of confidence in the country.
The datacentre, to be built in Blyth, Northumberland, will store the data needed to power AI systems and generate information. This investment comes after Blackstone purchased the site of the failed Britishvolt battery startup in April. Construction is expected to start next year, with Blackstone also committing £110m to support skills training and transport infrastructure in the region.
Starmer’s government is committed to growing the UK economy through foreign investment, with Blackstone’s investment being a key part of this strategy. The prime minister is also set to meet with other chief executives in New York to encourage more foreign investment in the UK.
Additionally, Starmer will visit Brussels to discuss resetting EU-UK relations after meeting with Ursula von der Leyen at the UN general assembly. The Labour Party has made business investment a priority, with a focus on an international investment summit in October and plans to appoint an investment minister before then.
The government is also facing pressure to raise taxes on private equity firms, with concerns raised about a tax loophole that allows individuals working in private equity to pay lower taxes on their profits. Despite these challenges, the government remains committed to attracting foreign investment and growing the UK economy.
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