US investment firm Blackstone is injecting £10 billion ($13.4 billion) into a groundbreaking AI datacenter project in northeast England, as announced by British Prime Minister Keir Starmer on Wednesday. Billed as Europe’s largest AI datacenter, this facility is set for construction in Blyth, Northumberland, where the now-defunct BritishVolt battery plant once stood. The project promises to generate over 4,000 jobs, including 1,200 construction roles.

“Today’s announcement with Blackstone is a substantial vote of confidence in the UK, showcasing our nation’s revival as a global player open for business,” Starmer declared in a prepared statement.

Beyond the primary £10 billion investment, Blackstone has also pledged £110 million to enhance worker skills and regional transportation infrastructure.

The bulk of Blackstone’s funding is expected to finance AI accelerators. While Nvidia’s upcoming Blackwell accelerators are a popular choice due to their robust ecosystem, AMD’s Instinct MI300 series and Intel’s Gaudi3, which have become formidable contenders, could also power the facility.

Historically, private equity firms like Blackstone seldom venture into datacenter construction. However, renting AI infrastructure has emerged as a lucrative business. According to The Next Platform, a $1.5 billion investment in an AI datacenter could yield about $5.27 billion in revenues over four years. With a $13.4 billion stake, Blackstone stands to profit significantly, provided the AI boom remains robust.

Notably, Blackstone is no novice in this domain. Earlier this year, they backed CoreWeave’s GPU rental business with a $7.5 billion debt financing round. Whether Blackstone will manage the Blyth datacenter directly or through another company like CoreWeave remains uncertain. Given CoreWeave’s recent £1 billion UK expansion plan, a partnership seems plausible.

Blackstone has been contacted for further comment on this development.