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National Grid to site biggest substation on Teesside, near planned AI datacentre

National Grid has taken a step towards building Britain’s biggest electricity substation on Teesside, which could supply power to a vast neighbouring datacentre as the UK races to expand its AI infrastructure. Last week the company agreed to purchase 29.5 hectares (73 acres) of land at Dorman Point on a site owned by Teesworks, a local private-public partnership. The deal was first reported by Sky News. The deal followed reports last year that the UK government had picked Teesworks as the site for a new artifici…

By the Truvace desk2 min read1 sourceEvidence: Emerging · 42/100 — News report · 1 independent sourceJournalismTRV-2026-2326· cite & verify
National Grid to site biggest substation on Teesside, near planned AI datacentre

In brief

National Grid agreed to buy 29.5 hectares at Dorman Point, on land owned by the Teesworks partnership, as a step toward building Britain's biggest electricity substation. The site is next to a planned AI datacentre that the government reportedly selected, with planning applications covering nearly 500,000 sq metres.

The deal matters because power access is described by the local mayor as the main obstacle to building datacentres quickly in the UK. It is only a land purchase and an early step. Public opposition to datacentres elsewhere in the UK shows that construction and community acceptance remain unresolved.

Main points

  1. National Grid agreed to buy 29.5 hectares (73 acres) at Dorman Point from Teesworks.
  2. The planned substation could supply a neighbouring datacentre, with up to 3.2GW of capacity cited by the mayor.
  3. The government published a draft national policy statement describing datacentres as fundamental to the economy.
  4. Campaign groups are protesting against datacentre plans from Auchtertool to Brick Lane.
  5. Balfour Beatty was reported to be in line to deliver the substation, with Steel River Power also involved.

The gain

Securing land for a substation offering up to 3.2GW could ease the power-connection bottleneck that has held back UK AI datacentre projects and let Teesside compete for investment.

The rundown

The land deal followed reports that the UK government had picked Teesworks for a new AI datacentre. National Grid's head of land said the agreement reflects work to enable infrastructure supporting AI growth and regional industrial development.

Mayor Ben Houchen said the biggest problem for builders is getting enough power to a site quickly. He argued that the US, the Gulf and parts of Europe have attracted investment while the UK waited in the queue, and said he wanted sensitive data stored on British soil.

The government's draft policy statement says the country and host communities should benefit from datacentres. Meanwhile, the Guardian reported in October that AI companies warned ministers of a 12-month window to address public opposition or risk US-style protests.

Sources

  1. JournalismThe Guardian2026-11-01

The debate