The north England site that was going to house a gigafactory from start-up Britishvolt has been purchased by a US private equity firm, which plans to build one of the largest data centres in Europe.

The 95-hectare site in Blyth has been bought by Blackstone Group for an estimated £110m, according to documents from Northumberland County Council.

Council leader Glen Sanderson said: “Driving growth and jobs is a key priority for this council. Next week, cabinet will consider this really unique opportunity for Northumberland, which offers a huge boost to the regeneration and renaissance of the local area.

“The project would represent a significant inward investment of up to £10bn, putting our county at the forefront of developments in the digital economy and delivering over 1,600 direct jobs, including 1,200 long-term construction jobs and over 2,700 indirect jobs over the course of the development.

“If agreed, the council would receive up to £110m in exchange for amending the buy-back option...