Source URL: https://www.theregister.com/2024/09/26/backstone_ai_datacenter/
Source: The Register
Title: Blackstone invests £10B to build Europe’s ‘biggest AI datacenter’ in UK
Feedly Summary: Construction slated to begin next year at site of failed BritishVolt plant
US investment giant Blackstone is plowing £10 billion ($13.4 billion) into a massive AI datacenter project located in northeast England, British Prime Minister Keir Starmer announced on Wednesday.…
AI Summary and Description: Yes
Summary: Blackstone’s investment of £10 billion in a massive AI datacenter in northeast England marks a significant boost for the UK’s AI infrastructure and economic landscape. The project promises to create thousands of jobs and positions the UK as a pivotal player in the global AI domain. The facility is expected to utilize advanced AI accelerators, potentially from industry leaders such as Nvidia, Intel, or AMD.
Detailed Description:
– **Investment Overview**: Blackstone, a major US investment firm, is committing £10 billion ($13.4 billion) to build what is anticipated to be the largest AI datacenter in Europe, located in Blyth, Northumberland.
– **Economic Impact**: The project is projected to create over 4,000 jobs, including 1,200 construction-related positions, which underscores the investment’s potential to enhance local employment and skill development.
– **Government Statement**: British Prime Minister Keir Starmer lauded the investment as a strong endorsement of the UK’s business environment, indicating a resurgence in Britain’s status as a global business hub.
– **Technological Implications**:
– The datacenter will likely focus on AI accelerators, a crucial component for handling AI workloads. Blackstone’s choice of technology partners remains unclear but could include Nvidia, Intel, or AMD.
– Nvidia’s upcoming Blackwell accelerators are noteworthy contenders, though AMD’s and Intel’s latest offerings have shown improved competitiveness.
– **Economic Viability**: The datacenter investment aligns with a growing trend where AI infrastructure becomes increasingly profitable. Reports suggest that an investment of around $1.5 billion in AI infrastructure can yield revenues of approximately $5.27 billion within four years, indicating a lucrative opportunity for Blackstone.
– **Industry Context**: Blackstone is already involved in the AI infrastructure space, having co-financed CoreWeave, which is engaged in the GPU rental market, suggesting a strategic interest in leveraging AI’s growth.
The implications of this investment extend beyond immediate job creation, shaping the landscape for AI technology deployment and cloud infrastructure services in Europe, particularly amidst increasing competition among hardware providers. For security professionals, considerations will also include the security measures necessary for such a vast datacenter, compliance with various regulations, and ensuring data privacy within the operational framework.