QTS doubles down as OpenAI pauses North East data centre ambitions
As the developer of ChatGPT announces a halt on its Stargate UK scheme, which would have included a data centre at Cobalt Park in North Tyneside, the Blackstone-owned company behind the £10m Cambois scheme has confirmed its ongoing commitment to the project and the region.
OpenAI said last September that it intended to build a data centre at Cobalt Park, working with Nvidia, an American chipmaker, and British technology firm Nscale.
It was part of a £31bn announcement from the Department for Science, Innovation, and Technology, which said it was creating an AI growth zone in the North East to boost economic growth and create thousands of jobs for the region.
Details about this project were scant, but were said to involve ‘new AI infrastructure’, focused around computer chips, at various locations around the country.
Now, OpenAI has pressed pause on the project, citing concerns around high energy costs and regulation, with a spokesperson saying: “We continue to explore Stargate UK and will move forward when the right conditions, such as regulation and the cost of energy, enable long-term infrastructure investment.”
QTS’ Cambois site was also part of the government’s AI growth zone announcement, and a spokesperson for the company has now stressed that it remains committed to delivering in Northumberland.
READ MORE: Govt looks to the North for AI growth zones
In December, Northumberland Council approved reserved matters for phase one of the 6m sq ft campus on the former Blyth Power Station site, clearing the way for construction of the first two buildings to begin.
Financed by Renaissance Land (owned by Blackstone), the data centres will be developed and operated by Quality Technology Services.
The statement from QTS reads: “QTS remains committed to delivering our Cambois Data Centre project in Northumberland.
“We have made significant progress on site since we announced its launch, having worked collaboratively with the local community and Northumberland County Council.
“Since receiving planning approval late last year, we have started preparing the site for development and this spring, we will install piling foundations for the first data centre building.
“We’re deeply committed to being a good neighbour where we live, work and operate.
“In Cambois, we are collaborating closely with local partners to support causes that matter to the wider community, including local charities and education providers, with a full programme of upcoming initiatives.”
A spokesperson for NECA said: “It is disappointing news that this is on hold, but it reflects national challenges around energy pricing and regulatory certainty rather than the strength or ambition of our region.
“However, we will continue to work with government to explore ways to remove the barriers and ensure this can move forward.
“The North East remains one of the UK’s designated AI Growth Zones, with strong assets in power, land, skills and applied innovation, and our direction has not changed.”
