Teesside Power: National Grid Buys Land for AI Infrastructure

National Grid has purchased 73 acres of land at Dorman Point in Teesside.

The acquisition, first reported by Sky News, is the latest step in building what would become the country’s largest electricity substation. The site is owned by Teesworks, a local private-public partnership. This substation is intended to supply power to a massive adjacent datacenter.

The land purchase follows planning applications submitted last year for a datacenter project covering nearly 500,000 square meters. The UK government had previously selected Teesworks as the location for this artificial intelligence facility. If completed, the infrastructure will provide up to 3.2 gigawatts of power capacity.

Matt Pearce, head of land at National Grid, stated that the agreement supports the growth of AI and digital technologies. He described the deal as a result of constructive work among partners to enable vital infrastructure. Pearce added that the company is committed to progressing the development as quickly as possible.

Ben Houchen, the mayor of the Tees Valley combined authority, emphasized the importance of securing power supply. He noted that while the UK waited, competitors in the US, the Gulf, and parts of Europe attracted investment. Houchen argued that having 3.2GW of local capacity allows Britain to compete for these projects. He stated a preference for storing sensitive data on British soil in Teesside rather than in Texas or Abu Dhabi.

The government released a draft national policy statement last week, describing datacenters as fundamental to the economy. The document compared them to railways and electricity networks. It called for taking control over datacenter development to ensure host communities benefit.

Balfour Beatty, a London-listed infrastructure group, is reportedly in line to deliver the substation. Steel River Power is also heavily involved in the project. Both companies were approached for comment but have not yet responded. The construction follows a warning from AI companies that the UK has 12 months to address public opposition or risk delays similar to those seen in the US.