Data replaces batteries in Northumberland

THE site of what was to be Britain’s first gigafactory in Blyth (Northumberland) has been sold to US private equity investors.

Northumberland County Council announced that it had sold the land to Blackstone, which will build a data centre there.

The land in Cambois near Blyth was earmarked for a £3.8 billion (€4.45 billion) Britishvolt factory making batteries for electric vehicles before the company collapsed into administration in January 2023 with the loss of 200 jobs.

At the time, Britishvolt, backed by Swiss mining multinational Glencore, was due to receive £100 million (€117.18 million) in the UK government funding.

Australian company, Recharge Industries based in Geelong (Australia), agreed to take on Britishvolt after finalising a deal with the company’s administrators, renewing hopes of building the Blyth gigafactory.

Instead, Recharge received a winding-up petition in March 2024 as former senior executives reclaimed unpaid wages.

A month earlier, auditors EY said Recharge defaulted on the agreement and had yet to pay the £8.75 million (€10.25 million) that was owed on the deal. Since then nothing appeared to have moved at the 235-acre Blyth site.

Northumberland Country Council did not disclose financial details of the Blackstone transaction, although receivers Begbies Traynor Group which oversaw the sale, said it was “complex.”

Council leader Glen Sanderson said the Blackstone data centre would bring an investment of up to £10 billion (€11.7 billion) and provide around 4,300 jobs.

“This really unique opportunity for Northumberland offers a huge boost to the regeneration and renaissance of the local area,” Sanderson said.