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.