
National Grid has advanced its plans to construct the UK’s biggest electricity substation on Teesside following a land acquisition agreement. The company agreed last week to purchase approximately 29.5 hectares at Dorman Point, a site owned by Teesworks, a local partnership organization.
The substation development aligns with previous government plans to establish a major artificial intelligence datacentre facility on the same Teesside location. Planning applications for the datacentre project, which would cover nearly 500,000 square metres, had been submitted in the preceding months. According to National Grid leadership, the land purchase reflects collaborative efforts among stakeholders to enable essential infrastructure development that supports artificial intelligence and digital technology expansion in the region.
Local officials have highlighted the strategic importance of the project for regional economic development. The Tees Valley mayor emphasized that power supply capacity has historically been a limiting factor for datacentre construction in Britain, with international competitors in the United States and Gulf regions attracting investment while UK projects faced delays. The Teesside facility is designed to provide up to 3.2 gigawatts of capacity, potentially enabling Britain to compete for significant datacentre projects and maintain sensitive data domestically.
The government recently released a draft national policy statement characterizing datacentres as critical infrastructure comparable to historical investments in railways and electricity networks. Officials stated that strategic development and community benefit from these facilities should be prioritized.
Datacentre expansion across the UK has generated substantial opposition from campaign groups protesting proposed sites in various locations. Industry representatives previously indicated that public acceptance represents a significant challenge requiring government attention within a specified timeframe. Infrastructure services group Balfour Beatty was reported as the likely contractor for the substation project, with Steel River Power also identified as substantially involved in the development.
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