A gigafactory could still be built in Northumberland despite a new plan for the proposed site near Blyth.

A project to build an AI data centre campus on the site of the former Blyth power station at Cambois moved a step closer when Northumberland County Council’s cabinet agreed to remove a pre-existing buy-back clause on the land.

This paved the way for a £10 billion investment by US firm Blackstone and their data centre subsidiary QTS.

The site had been earmarked for the construction of a so-called gigafactory producing electric car batteries and creating thousands of jobs. However, the plans stalled when start-up firm Britishvolt went into administration.

The council say the data centre project will create more than 1,600 direct jobs, including 1,200 long-term construction jobs, as well as more than 2,700 indirect jobs.

In contrast, the gigafactory project was estimated to create 3,000 on-site jobs and 5,000 in the supply chain. The reduction in the number of jobs had led to concern from some opposition politicians – but speaking at the cabinet meeting, both the council leader and his deputy suggested that the door for a gigafactory remained open.

Leader Glen Sanderson said: “We have sufficient parcels of land that would support a very large-scale enterprise like a battery factory or a gigafactory. We also have a number of other sites that would support other industry and other development.

“There of plenty of other opportunities to invest across the county, but particularly in that area. We’re working with potential investors as we speak.”