National Grid Acquires Teesside Land for UK's Largest Substation to Power AI Datacentre

November 1, 2026
National Grid Acquires Teesside Land for UK's Largest Substation to Power AI Datacentre
  • National Grid has agreed to buy more than 70 acres at Dorman Point on Teesside from Teesworks to site Britains largest electricity substation, intended to support a nearby AI datacentre.

  • The purchase covers 29.5 hectares (73 acres) at Dorman Point, Teesside, with the substation designed to alleviate power bottlenecks and back a major data-centre project.

  • The broader context emphasizes UK efforts to secure AI infrastructure while balancing community and environmental considerations amid potential project delays.

  • Chris Musgrave, Teesworks chairman, said remediation and land preparation for handover are the immediate focus.

  • Officials say the deal highlights the need to fix power supply delays that have constrained industrial and data-centre development in the UK.

  • The site is intended to feed power to a neighboring data centre, with strong interest from US frontier labs and hyperscalers and a forthcoming decision on a preferred partner.

  • The government’s draft national policy statement notes datacentres are vital to the economy and calls for ensuring benefits to the country and local communities through controlled development.

  • National Grid’s Matt Pearce framed the acquisition as collaborative progress to enable AI and digital technology growth in the region.

  • Balfour Beatty is expected to deliver the substation, with Steel River Power as a key partner; both firms are involved and were asked for comment.

  • Tees Valley Mayor Ben Houchen underscored the urgency of sufficient power, suggesting up to 3.2GW could attract major AI infrastructure investments to the UK.

  • Financial terms remain undisclosed, and the project hinges on remediation, land handover, and grid-connection approvals.

  • The deal follows Sky News reporting and government plans positioning Teesworks as a site for a new AI datacentre with a planning application for a large project.

Summary based on 2 sources


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