U.S. private equity firm Blackstone (BX.N) has confirmed a £10 billion ($13.3 billion) investment to build an artificial intelligence data centre in northeast England, the British prime minister’s office announced on Wednesday (Sept.25).

The construction of the AI data centre, set to begin next year, will create 4,000 jobs, including 1,200 specifically for the site’s construction, according to Prime Minister Keir Starmer during his visit to New York.

Energy-intensive data centres have become a rare growth opportunity for commercial landlords like Blackstone, as other asset classes, such as post-pandemic office spaces, have seen values plummet.

In April, Blackstone proposed building a "hyperscale" data centre on a derelict site in Blyth, Northumberland, previously designated for an electric vehicle battery factory. The original plan fell through when Britishvolt, the UK startup behind the project, collapsed last year, dealing a setback to the country’s ambitions for a domestic battery industry.

Blackstone President and COO Jon Gray confirmed the investment and its expected economic benefits. As part of the deal, Blackstone will also invest £110 million into a local fund to support skills training and improve transportation infrastructure in Blyth, the prime minister’s office added.