National Grid has agreed to purchase 29.5 hectares of land at Dorman Point on the Teesworks site, marking a significant step toward constructing what would be Britain’s largest electricity substation. The facility is intended to provide power supply to a major datacentre development, supporting the country’s efforts to expand artificial intelligence infrastructure and digital capabilities.
The Teesworks site was previously identified by the UK government as a location for a new AI datacentre, with planning applications submitted for a project spanning nearly 500,000 square meters. National Grid officials emphasized that the land acquisition reflects collaborative efforts among stakeholders to enable critical infrastructure development and support regional industrial and economic growth. The company stated its commitment to advancing the project as quickly as possible in coordination with its partners.
Ben Houchen, the mayor of the Tees Valley combined authority, highlighted the strategic importance of the substation, noting that securing adequate power supply has historically been a major obstacle for datacentre development in the UK. He indicated that the facility’s capacity of up to 3.2GW would enable the region to compete for investment currently going to the United States, the Gulf region, and parts of Europe. Houchen emphasized the importance of establishing domestic datacentre infrastructure for securing sensitive data within British territory.
The government recently released a draft national policy statement characterizing datacentres as essential infrastructure comparable to railways and electricity networks. The statement stressed the need for the country to maintain control over datacentre development and ensure that host communities benefit from such projects.
Datacentre expansion in the UK has faced considerable opposition from campaign groups protesting proposed developments across various locations. Reports indicate that AI companies have warned government officials that public opposition could escalate if infrastructure development is not properly managed. Infrastructure services firms Balfour Beatty and Steel River Power have been reported as key contractors involved in delivering the Teesworks substation project.
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