Keir Starmer is set to announce the creation of a £10bn AI datacentre in the north-east of England, generating 4,000 jobs, to be funded by a private equity firm run by a supporter of former US President Donald Trump. Prime Minister Boris Johnson is due to celebrate the investment during meetings in New York to attract foreign investment. The datacentre, to be built by Blackstone in Blyth, Northumberland, will store data necessary for AI and AI-generated information. Construction is expected to begin next year on the site of the failed Britishvolt battery startup. Blackstone will also invest £110m into skills training and infrastructure in the area.
Starmer’s government is prioritizing economic growth through foreign investment, with Starmer set to meet with Blackstone executives, including a supporter of US President Joe Biden. Johnson and Ursula von der Leyen, President of the European Commission, are also set to meet to discuss resetting EU-UK relations. Starmer has made investment a key focus since taking office, and the government is planning an international investment summit in October.
At the Labour conference, questions were raised about the government’s industrial strategy, taxation, and workers’ rights. The government is considering raising taxes on private equity firms, which has faced opposition from the industry. The Treasury’s plan to close a tax loophole affecting private equity workers’ capital gains tax has been met with criticism. Ultimately, the investment in the AI datacentre signals a vote of confidence in the UK economy and its potential on the global stage.
Source
Photo credit www.theguardian.com
