Northumberland may have a new hyperscale data center after plans for a huge battery plant collapsed.
Britishvolt had been planning a £3.8bn electric vehicle battery factory on the 95 hectare Northumberland Energy Park (NEP3) site in Cambois, near Blyth, creating up to 3,000 jobs.
However, the company fell into receivership in January last year after failing to raise sufficient funds, despite a promise of £100m in government subsidy. Then the Australian company Recharge Industries took over.
Now, Northumberland County Council says it is considering plans to build a hyperscale data center campus. The funds will be managed by global asset management firm Blackstone, which has now acquired the site for £110m.
“Driving growth and jobs is a key priority for this Council. Next week the Cabinet will consider this truly unique opportunity for Northumberland, which offers a huge boost to the regeneration and rebirth of the local area,” says council leader , Glen Sanderson.
“If agreed, the council would receive up to £110 million in return for amending the NEP3 land buyback option, and use the proceeds to establish a fund that will boost investment, including in the economic corridor along our fantastic, new Northumberland line.”
There are currently no details on the data center proposals, but the site, which once housed Blyth Power Station, has been permitted and has good transport links and access to renewable energy.
The council says the project would represent an inward investment of up to £10 billion, bringing more than 1,600 direct jobs to the region, including 1,200 long-term construction jobs, as well as more than 2,700 indirect jobs over the course of the development.
The council's cabinet will consider the plans at a meeting on April 23.
The UK currently has around 800 data centers in total, between them generating around £4.6 billion in revenue in 2021 and 2022 and contributing 6.9% of GDP.
However, suitable sites are difficult to find and planning applications are frequently rejected. Industry group TechUK has called for the Department of Levelling, Housing and Communities (DLUHC) to work with the Department of Science, Innovation and Technology (DSIT) to ensure the National Planning Policy Framework addresses the need for continued investment in the sector. .
The majority of UK data centers are located in London and the South East. However, in a report last year, property investment firm CBRE said the North East of England was a viable alternative.
“The lower cost base compared to London and substantial reserves of available renewable energy position the North as a potential alternative to the relatively high-cost, energy-constrained London region where wholesale capacity has traditionally been based.” said Keith Breed, senior at CBRE. research analyst, data centers.
A recent backer for the region came from Microsoft, which is planning a new data center on the site of a decommissioned nuclear power station in Eggborough, Yorkshire.
