The Northumberland Energy Park (NEP3) site will be developed by Blackstone portfolio company QTS to build hyperscale and AI data centres.
Council leader Glen Sanderson said the investment would be the "largest ever" to come to Northumberland.
The council will net £110 million from the sale of the land, and has added in a buy back clause if the project is not completed.
“The project would represent a significant inward investment of up to £10 billion, 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,” Sanderson said.
Alex Webb, head of sales at IT service provider Redcentric said there is currently a rising demand for the development of data centres, such as the Blackstone site.
As well as building news sites, Webb said that the UK should focus on upgrading existing data centres to become more energy efficient, allowing them to capitalise on the opportunity presented by AI.
“This dual approach of pursuing both new development and efficiency enhancements in existing infrastructure is essential for creating a resilient, efficient, and scalable IT infrastructure that is capable of supporting the UK's digital economy ambitions.
“This strategy not only addresses the immediate challenges posed by power availability but also ensures a more sustainable growth pathway for the sector,” he said.
