National Grid Plans Britain’s Biggest Substation Near Teesside AI Data Centre

Nov 1, 2026
National Grid has agreed to buy 29.5 hectares at Teesworks for a proposed electricity substation that could support a major AI data centre.

National Grid has agreed to buy 29.5 hectares at Dorman Point in Teesside for a proposed electricity substation, The Guardian reports. The project could become Britain’s biggest substation and supply power to a planned AI data centre nearby.

The land is owned by Teesworks, a private and public partnership. The deal follows reports last year that the UK government had picked Teesworks as the site for a new AI data centre, and planning applications have been submitted for a project spanning nearly 500,000 square metres. The deal was first reported by Sky News.

Tees Valley mayor Ben Houchen said the site could have up to 3.2 GW of electricity capacity. "Everyone who has tried to build a datacentre in this country knows the biggest problem is getting enough power to the site quickly," Houchen told Sky News. Balfour Beatty was reported to be in line to deliver the substation for National Grid.

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