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North East England AI Growth Zone (Cobalt Park & Blyth)

Blackstone (via QTS) at Blyth; Stargate UK (OpenAI, Nvidia, Nscale) at Cobalt Park

Wallsend & Blyth, North EastApproved Verified

UK's second AI Growth Zone, announced in September 2025 alongside the UK-US Tech Prosperity Deal, anchored at Cobalt Park (North Tyneside) and Blyth (Northumberland). Stargate UK -- a joint venture between OpenAI, Nvidia and British firm Nscale -- will deploy sovereign AI compute at Cobalt Park, starting with 8,000 GPUs scaling to 31,000. Blackstone has committed GBP 10bn to the Blyth site via its QTS subsidiary, with the AI Growth Zone designation creating headroom for a further GBP 20bn from other partners. In April 2026 OpenAI paused Stargate UK, citing energy costs and regulation; it says it will proceed when conditions allow.

Key facts

Operator / developer
Blackstone (via QTS) at Blyth; Stargate UK (OpenAI, Nvidia, Nscale) at Cobalt Park
Location
Wallsend & Blyth, North East, United Kingdom
Status
Approved
Facility type
AI growth zone
AI relevance
High — AI/compute led
Announced
16 September 2025
Stated investment
£30,000,000,000
Jobs
More than 5,000 (government estimate)
Stargate UK
OpenAI/Nvidia/Nscale sovereign AI compute deployment at Cobalt Park, phase one up to 8,000 GPUs, scaling to ~31,000
Blyth investment
GBP 10bn committed by Blackstone via QTS, with GBP 20bn further potential
Wider package
£31 billion of US tech investment announced across UK AI infrastructure

Power & grid

Published capacity
  • 1,100 MW — Reported capacity, definition not publishedA megawatt figure was reported but the source does not define what it measures, so it is excluded from every total.
Power
Combined energy capacity target of 1.1GW within six years across the zone. Cobalt Park hosts the existing Stellium colocation campus (currently up to 80MW, scaling toward 180MW); Blyth hosts a new Blackstone/QTS hyperscale build.

Benefits vs drawbacks

Benefits

  • More than 5,000 jobs expected across the region (government estimate)Source
  • Blackstone/QTS committed £10bn to the consented Cambois campus at BlythSource
  • Planning momentum: 10 relevant permissions in 2025 across Blyth and Cobalt Park (FOI)Source

Drawbacks

  • OpenAI paused Stargate UK in April 2026, citing energy costs and regulationSource
  • Many permissions predate the designation, so the zone's own effect is unclearSource
  • Cambois alone plans 580 diesel standby generators and about 184,000 tCO2e a yearSource

£5m of government funding for local AI adoption and skills; North East Combined Authority prospectus covers skills, adoption, innovation and infrastructure.

Timeline

  1. North East England (Cobalt Park and Blyth) named an AI Growth Zone alongside the UK-US Tech Prosperity Deal.

    Source
  2. OpenAI paused Stargate UK, citing energy costs and regulation.

    Source

Sources

Last verified

23 September 2026

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