Britishvolt collapse in Northumberland makes way for 'one of Europe's largest data centres'
The former Britishvolt site in Northumberland is set to become one of Europe’s largest data centres in a takeover that could create hundreds of jobs.
Private equity giant Blackstone, one of the world's largest investment companies, is proposing a deal that would firmly end any prospect of an electric car battery factory being built on the site.
The new proposal has been unveiled by Northumberland County Council following months of uncertainty over the land at Cambois, near Blyth.
Britishvolt had proposed to build a £3.8 billion gigafactory - an electric car battery factory - on the site in Blyth, before the company collapsed early last year.
Australian firm Recharge Industries took control of Britishvolt after it went into administration, but Recharge was faced with a winding up petition last month.
On Monday (15 April), official receivers for Britishvolt Properties revealed they had entered into a contract to sell the site to a subsidiary of Blackstone, the US investment giant.
Blackstone said the 235-acre site is now set to be transformed “into one of the largest data centre facilities in Western Europe”.
Northumberland County Council will assess the plans next week which, if approved, could see building work begin in the new year.
Council leader Glen Sanderson said the council’s cabinet will “consider this really unique opportunity for Northumberland which offers a huge boost to the regeneration and renaissance of the local area”.
He said the data centre plans are expected to create over 1,600 direct jobs, including 1,200 long-term construction jobs.
If agreed, the council would hand Blackstone long-term control of the site of up to £110 million in funding for local development, as well as £20 million to purchase the land.
The site will aim is to help meet the growing demand for housing data - particularly with the growth of AI - and represents an investment of up to £10bn.
Bob Maxwell, joint receiver at Begbies Traynor Group, 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.”
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