National Grid buys Teesside land for UK's largest substation

National Grid has agreed to buy 73 acres of land at Dorman Point, a move that positions the utility to build the largest electricity substation in Britain. The site is owned by Teesworks, a local private-public partnership, and sits adjacent to a planned artificial intelligence datacentre.

The acquisition, first reported by Sky News, was finalized last week. It follows a 2025 government decision to designate the Teesworks site for a new AI facility. Planning applications for that datacentre were submitted for a project spanning nearly 500,000 square metres.

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

Ben Houchen, mayor of the Tees Valley combined authority, told Sky News that power availability is the primary barrier for datacentre construction in the UK. He noted that while the UK has waited in line, competitors in the US, the Gulf, and parts of Europe have attracted investment. Houchen argued that having up to 3.2GW of capacity locally allows the UK to compete for these projects. He said he would prefer the infrastructure to be on Teesside rather than in Texas or Abu Dhabi to keep sensitive data on British soil.

The government published a draft national policy statement on datacentres last week. The document describes datacentres as fundamental to the economy, comparable to railways and electricity networks. It states that the country and host communities must benefit from the development.

Opposition to rapid datacentre construction has emerged in various locations, including Auchtertool north of Edinburgh and Brick Lane in east London. In October, the Guardian reported that AI companies told ministers they had 12 months to manage 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.