National Grid Buys 73 Acres on Teesside for a Substation to Power a Planned AI Data Centre
National Grid has agreed to buy 29.5 hectares at Dorman Point on Teesside for a 400 kV substation that would feed a planned AI data centre through a private-wire network. National Grid's project page says the substation is contracted for over 1 GW; Tees Valley mayor Ben Houchen spoke of up to 3.2 GW. The outline planning application is still before the local council.
Britain's bet on a giant AI data centre on Teesside now has its first piece of hard infrastructure moving, and the numbers attached to it already disagree. National Grid has agreed to buy 29.5 hectares (73 acres) of land at Dorman Point, on the Teesworks industrial site, for a new substation that could supply power to a planned data centre next door, the Guardian reported on November 1, following Sky News. The Guardian calls it Britain's biggest substation.
What National Grid has committed to#
National Grid's project page for the Tees Dock Substation describes a new 400 kV substation that is "contracted to provide over 1 gigawatt of import and export capacity." It would support "a proposed private-wire network serving a new data centre," alongside a proposed battery storage site.
The project is at an early stage. National Grid submitted an outline planning application to Redcar and Cleveland Borough Council in September 2026, reference R/2026/0711/OOM, and says the council and the energy department confirmed that a full environmental impact assessment is not required. It plans a four-week public consultation on detailed designs in spring 2027 and, subject to approval, land remediation from autumn or winter 2027 before construction. A £530,000 community fund would be unlocked if planning consent is granted.
Matt Pearce, National Grid's head of land, said the land deal "will support the growth of AI and digital technologies, and enable the region's next phase of industrial and economic development," according to the Guardian.
1 GW contracted, 3.2 GW promised#
The mayor's number is three times National Grid's. Ben Houchen, mayor of the Tees Valley Combined Authority, told Sky News: "Having up to 3.2GW of capacity here means we can finally compete for those projects." National Grid's own figure is "over 1 gigawatt." Neither source explains the difference; it may cover capacity beyond this substation, but we could not confirm that.
Sky News, in a report carried by This is the Coast, said the planned data centre is likely to be the largest in Europe and has drawn interest from US frontier AI labs and hyperscalers, citing sources. One industry source told Sky that competition for the site was likely to lead to an investment decision with a preferred partner in the coming months. No operator has been named. The Guardian reports that Balfour Beatty is in line to build the substation, with utilities firm Steel River Power also involved; both were approached for comment.
The policy backdrop#
The deal lands in the same week the government published a draft national policy statement on data centres, which, the Guardian notes, calls them "as fundamental to our economy as the railways and electricity networks." The Budget also introduced a Data Centre Covenant that offers faster grid connections to strategic data centres in return for commitments on bills, jobs and local investment.
Limits#
- The data centre itself has no named operator or published capacity. The "largest in Europe" description and the interest from AI labs come from Sky News's unnamed sources.
- We did not see the land purchase agreement. The 29.5-hectare figure and the purchase come from Sky News and the Guardian; National Grid's page describes the substation, not the sale.
- The 3.2 GW figure is the mayor's claim. National Grid's page says over 1 GW.
- The planning application is pending, and National Grid calls its timeline indicative.