National Grid has moved forward with plans to construct the United Kingdom’s largest electricity substation in Teesside. This facility is intended to provide the power necessary to support a massive adjacent datacentre, marking a critical step in the nation’s efforts to expand its artificial intelligence capabilities.
To facilitate the project, the company confirmed the purchase of 29.5 hectares of land at Dorman Point last week. The site is currently owned by Teesworks, a public-private partnership. This development aligns with government plans identified last year to establish a new AI datacentre at the Teesworks location, which is slated to encompass nearly 500,000 square metres. 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.
Matt Pearce, head of land at National Grid, described the agreement as a reflection of the collaborative efforts to secure vital infrastructure. He stated that the project would bolster the growth of digital technologies and support the region’s industrial and economic development. The company has expressed its commitment to working with all partners to expedite the development process.
Tees Valley Mayor Ben Houchen noted that the primary obstacle to building datacentres in the UK has been the rapid delivery of power. He emphasized that the new 3.2GW capacity would allow the region to compete globally for high-tech investments. Houchen added that if the UK intends to maintain its own AI sovereignty, it needs appropriate physical infrastructure to store sensitive data securely on domestic soil. Ben Houchen, the mayor of the Tees Valley combined authority, told Sky News: “Everyone who has tried to build a datacentre in this country knows the biggest problem is getting enough power to the site quickly. According to the deal was first, By Sky News. “While we’ve been stuck in the queue, the US, the Gulf and parts of Europe have been getting on with it and hoovering up the investment. Having up to 3.2GW of capacity here means we can finally compete for those projects. “If Britain is serious about having its own AI capability, with sensitive data stored safely on British soil, it needs somewhere to physically put it, and I’d much rather that was Teesside than Texas or Abu Dhabi.”.
The central government recently issued a draft national policy statement characterizing datacentres as infrastructure as fundamental to the national economy as electricity networks and railways. The policy underscores the need to maintain oversight of these developments to ensure communities benefit directly from them.
Despite this progress, the industry faces significant public pushback against datacentre construction across the country, from sites near Edinburgh to East London. AI companies have reportedly warned ministers that they have a one-year window to address these public concerns before the risk of widespread protests jeopardizes future construction timelines. According to in October,, AI companies told ministers they had 12 months to head off public opposition to datacentres in the UK or risk US-style protests that could threaten their construction.
Industry reports indicate that Balfour Beatty is positioned to lead the construction of the substation, with Steel River Power also playing a substantial role in the project. Both firms have been reached for comment regarding their involvement in the Teesside initiative.
