National Grid told a Chamber of Commerce panel it is investing in the Blyth network for AI and data centres. Power costs, capacity and skills stand in the way.

National Grid is investing in the electricity network at Blyth to meet demand from artificial intelligence and data centres, its external affairs advisor told a business audience in Newcastle this week. Blyth and Tees Dock were the two places he named.

Will Wilcock was speaking on a panel at a North East Chamber of Commerce Thought Leadership event, The Future of Connectivity in the North East, held at Newcastle Racecourse on Wednesday 4 November as part of North East Expo.

“The North East has a huge opportunity from the growth of AI and we’re investing in the network to support the region’s future needs, including at Blyth and Tees Dock,” he said. “Early engagement is absolutely key. By working collaboratively across the region, we can unlock investment, strengthen business confidence and deliver lasting benefits for communities.”

Why Blyth matters here

The south east corner of the county is where the biggest data centre plans in the region sit. QTS, owned by Blackstone, has planning permission for a data centre campus of up to 540,000 square metres at Cambois, near Blyth, according to Northumberland County Council. Our Northumberland planning news page sets out what has been approved there so far.

The panel did not discuss Cambois by name. What it did set out is the problem any scheme of that size runs into: the power has to be there, and getting a big development connected to the network takes time.

National Grid described the investment it says is needed to modernise the transmission network through its programme called The Great Grid Upgrade, including major projects across the North East meant to add capacity, improve resilience and support new development.

Joe Weston, design team manager at Northern Powergrid, which runs the local distribution network, spoke about the difficulty of connecting major developments. The Chamber’s account of the event says he stressed strategic planning, realistic timescales and coordination between developers and the network operators.

“No reason why the region can’t” become a hub

The most confident voice on the panel was Ed Bissell, sales director at Stellium Datacentres, which sponsored the event. He said subsea cable links are already helping Newcastle compete with established European data centre locations.

“We’ve already got the connectivity in place, and that’s putting the North East on the map for some of the world’s biggest technology companies,” he said. “With the right energy infrastructure and skills, there’s no reason why the region can’t become a major international hub for data centres and AI over the next five years.”

Not everyone on stage was as relaxed about the obstacles. According to the Chamber, panellists agreed that high energy costs, the planning process and the amount of electricity capacity available could all influence where investors put their money, and that closer working was needed to keep infrastructure projects in step with the region’s plans. The discussion was chaired by Adam Heather, a partner at the law firm Womble Bond Dickinson.

Jobs: fewer than people might expect

The panel was candid about employment. Data centres “may not directly generate thousands of permanent jobs”, the Chamber’s summary says. Speakers pointed instead to the work around them: regional supply chains, technology firms, engineering, construction and specialist skills. They also argued for investment in education and training so that local people and businesses can take up that work.

Tim Marsden, knowledge manager at the Chamber, said: “Today’s discussion highlighted the scale of the opportunity ahead of us. The North East already has many of the foundations needed to become a leading centre for digital connectivity and innovation.

“The challenge now is bringing business, government and infrastructure providers together to turn that potential into investment, jobs and lasting economic growth for our region.”

What it means for you

  • If you work in construction, engineering or electrical trades in south east Northumberland, the panel’s view is that grid and data centre projects will create most of their work in supply chains and building, not in permanent jobs inside the data halls.
  • If you run a business that needs a bigger power supply, Northern Powergrid’s message was to talk to the network operator early and plan for realistic connection times.
  • If you are training or choosing a course, the speakers named engineering, construction and specialist digital skills as the areas where demand will grow.

The Chamber says better connectivity, the move to a low carbon economy and good quality jobs are central to its Unlocking the North East Economy policy plan for 2025 to 2027, which calls for more investment in physical and digital infrastructure and in skills. The Chamber represents around 1,800 organisations, it says.

Blyth is already the focus of other energy investment: the Budget last week put more than £85 million into the Offshore Renewable Energy Catapult in Blyth, and work has started on the Energy Central Institute.

The event was sponsored by Stellium Datacentres, with NCG as associate sponsor of the Chamber’s Knowledge and Learning Programme.

Sources