MP seeking assurances on data centre new jobs
HAD BEEN EARMARKED FOR BATTERY GIGAFACTORY
A NORTHUMBERLAND MP is seeking assurances that new plans for the former Britishvolt site will create large numbers of new jobs to “transform the lives of constituents”.
The former Blyth Power Station coal yards at Cambois were originally earmarked to become an electric vehicle battery gigafactory, and failed start-up Britishvolt pledged to create 3,000 jobs as part of the project.
Those plans collapsed more than a year ago when the company fell into administration having failed to raise the funding needed.
Moves to revive the plans through Australian company Recharge Industries have also failed to come to fruition.
However, it was announced yesterday that US firm Blackstone Group – which has assets under management worth $1 trillion – and its tech subsidiary QTS had entered into a contract for the site, which Blackstone will transform into one of the largest data centre facilities in Western Europe, creating hundreds of jobs as part of a £10bn plan.
Northumberland County Council leader Glen Sanderson said the project would deliver 1,600 direct jobs.
This figure included 1,200 “longterm construction jobs” and more than 2,700 “indirect jobs” over the course of the development.
The number of jobs to be created will initially be lower than the proposed gigafactory, but it is hoped the development will boost the region’s digital economy and bring much wider long term benefits.
However Wansbeck MP Ian Lavery says he is seeking assurances on the planned jobs figure, highlighting how data schemes in the US do not appear to have high employee numbers.
He said that, while initially showing cautious optimism for the site, similar schemes in the US appear to have created as few as 25 to 30 permanent roles. Mr Lavery said: “The American experience certainly seems to be that data centres owned and operated by global technology giants built in low-cost, non-urban areas create few long term jobs, but offer an upfront financial benefit for local authorities.
“Whilst all authorities need to consider how best to obtain much needed finance, in South East Northumberland we are desperate for employment and this is a key site.”
He said that land between the rivers Blyth and Wansbeck has long been earmarked for industrial development and was considered prime estate for green technologies, but that some developments like the North Sea interconnector plant take up huge amounts of industrial space and create few jobs.
He added: “The original propo sa l announced two years ago for a battery manufac
turing gigafactory tackled the lack of plants in the UK and would have delivered thousands of new jobs. “The nearby port, plentiful space and green energy has been described as making the site in Cambois one of the best in Western Europe for job creation in advanced manufacturing.
“Whilst I would welcome the investment I am concerned about the reports from the US and would welcome clarification as to how many long- term
roles will be created by the development currently on the table.
“My concern is that the fantastic potential for the Cambois site, that could be transform the lives of thousands of my constituents will not be fully realised. I hope my concerns can be put to bed.”
Meanwhile, the land receivers who oversaw the deal – Bob Maxwell and Julian Pitts at Begbies Traynor – said the negotiation for the sale of the site marked the end of a complex 15-month process and represented a new chapter for the 235-acre site.
Mr Maxwell said: “From a difficult situation, the future sale will ensure a very bright future for the site.
“The process of securing a dependable buyer who has a clear, deliverable plan for the long-term use of this strategically important land asset was crucial after the failure of the last business at the site, and was a key factor in gaining the approval of Northumberland County Council who held options on the site.
“This transaction ensures that a well-funded and respected new owner can bring the enterprise and employment to the site that it deserves, and will be a huge boost for the whole region.
“Its scale and location make it perfect as the location for a European data hub, and the plans put forward will hopefully kick-start an entire tech industry cluster in the North East from the site.”