National Grid buys 73 acres for Teesside substation

National Grid has agreed to purchase 73 acres of land at Dorman Point in Teesside. The company bought the site from Teesworks, a local private-public partnership. This move advances plans to build the largest electricity substation in the United Kingdom.

The substation is designed to supply power to a massive artificial intelligence datacentre planned for the adjacent location. Last year, the UK government selected Teesworks as the site for this facility. Planning applications for the project, which covers nearly 500,000 square metres, have already been submitted.

Matt Pearce, head of land at National Grid, stated that the deal reflects constructive work among stakeholders to enable vital infrastructure. He said the project will support the growth of AI and digital technologies while enabling the region's next phase of industrial development. Pearce added that the company is committed to working closely with partners to progress the development as quickly as possible.

Ben Houchen, the Tees Valley combined authority mayor, emphasized the importance of power availability for datacentre projects. He noted that competitors in the US, the Gulf, and parts of Europe have been securing investment while the UK waited. Houchen argued that having up to 3.2GW of capacity at Teesside allows the region to compete for these projects. He stated that Britain needs a physical location to store sensitive data on British soil, and he preferred Teesside to locations like Texas or Abu Dhabi.

The government recently published a draft national policy statement on datacentres. The document described these facilities as fundamental to the economy, comparing their importance to railways and electricity networks. Officials wrote that they must take control over datacentre development to ensure the country and host communities benefit.

Opposition to rapid datacentre construction has grown across the UK. Campaign groups have protested planned developments in locations ranging from Auchtertool, north of Edinburgh, to Brick Lane in east London. In October, AI companies told ministers they had 12 months to address public opposition or risk US-style protests that could threaten construction timelines.

Balfour Beatty, a London-listed infrastructure services group, is reported to be in line to deliver the Teesworks substation for National Grid. Steel River Power is also heavily involved in the project. Both companies were approached for comment regarding the land purchase and construction plans.