Blackstone, one of the world's largest alternative asset managers, is stepping up efforts to address community opposition to its artificial intelligence data centre projects in the United Kingdom, chief executive Stephen Schwarzman has confirmed. Speaking at a technology conference in London on Wednesday, Schwarzman acknowledged that the rapid expansion of AI infrastructure had sparked local resistance, particularly over energy demands and planning constraints.
The firm, which has invested heavily in UK data centre capacity in recent years, is now working with local councils and environmental groups to design facilities that minimise visual and acoustic disruption. 'We are listening to residents and adapting our plans where possible to ensure these centres are good neighbours,' Schwarzman said, without disclosing specific sites or revised designs.
The UK government designated data centres as critical national infrastructure in 2024, streamlining approvals for projects deemed essential to national competitiveness. However, several proposed developments in southern England and the Midlands have faced delays amid objections from residents concerned about power consumption and landscape changes. Blackstone's comments come as the FTSE 100 slipped 0.3% to 8,214.50 in midday trading, with technology and real estate stocks under mild pressure amid broader market caution over interest rate expectations.
Analysts at Peel Hunt noted that the data centre sector remains a bright spot for UK infrastructure investors, with projected annual growth of 20% over the next five years. 'The tension between rapid AI adoption and local planning realities is the defining challenge for this industry,' they wrote in a note. For UK pension holders, exposure to Blackstone through diversified funds means the outcome of these negotiations could influence long-term returns from infrastructure-linked assets.
Blackstone's approach mirrors efforts by other tech giants, including Amazon Web Services and Microsoft, which have faced similar pushback in Europe. The company has not set a timeline for resolving current disputes, but Schwarzman indicated that further community consultations are planned for the autumn.