Northumberland deputy leader warns data centre developers over 'gold rush'
Warning to developers amid Northumberland data centre 'gold rush'

Concern is growing in South East Northumberland over plans to build a number of data centres in the area. QTS Blackstone has already begun work on what will be the largest development of its kind in Western Europe at Cambois.

Since the proposals came forward, two other applications have emerged for sites within two miles of the QTS scheme at West Sleekburn and Factory Road in Cambois. A third proposal is also understood to be under development, although the location remains under wraps.

Residents call for pause

This week, residents in the area have called for a "pause" in data centre development so locals can get more information about the projects and their potential environmental impact. Data centres use a significant amount of both energy and water, although the QTS site is set to use a "closed loop" system to limit water use.

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Now, the deputy leader of Northumberland County Council has warned against developers using the QTS scheme to drive up the value of land. While Coun Richard Wearmouth was positive about the US-led scheme, he was concerned other proposals amounted to a "gold rush".

Councillor's warning

Coun Wearmouth said: "South East Northumberland is home to the largest data centre development in Western Europe which is being built by Blackstone QTS. Northumberland County Council very much welcome this £30 billion project that has put our county at the heart of the AI revolution, as I think, do the vast majority of residents."

"That project has created a £110m growth fund administered by the council; will lead to locally retained business rates of up to £15m per year; and huge levels of cooperation on skills training, local employment, working with local contractors and so forth."

"What has been less welcome is the 'gold rush' that has taken place in the time since with speculative developers arriving, tying up land and electrical capacity that our area needs for employment. So far I am aware of three huge projects being proposed which have done the very minimum to engage with both the council and residents. They have no clue who their end users are and are just hoping to sell land on for as large a profit as they are able."

"They are very unpopular with residents and when you ask if they will engage as Blackstone QTS did all you get is radio silence. My message to these type of developers is simple, if you are not bringing something significant to the table and only looking to cash in, as far as I am concerned you can clear right off."

Developer response

A Wansbeck Regeneration Ltd spokesman said it has been involved in at least eight meetings with council officers and ensured its application was "comprehensive". They added that feedback has been taken on board from key stakeholders before submitting the application.

The spokesman said: "The site is within an AI Growth Zone and this proposal responds directly to Northumberland’s call for investment in what is a key growth sector for both the county and the wider North East region."

"As can be seen from the application submitted, the site benefits from its own private water supply with the capacity to cater for all of the sites needs, while Wansbeck Regeneration Ltd has secured an existing Power Connection via the open market purchase of a connection agreement earmarked for another infrastructure project to avoid requiring any additional capacity identified for other forms of development."

"The site will also benefit from proximity to QTS in Cambois as Northumberland builds its AI capacity (a concept know as 'clustering')."

"Wansbeck Regeneration Ltd are a long-term investor and are committed to building out the project whether independently or in partnership with a data centre operator, and they remain committed to working with the council and all stakeholders as it moves towards determination of the application."

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