National Grid buys 73 acres on Teesside for what could be UK's largest substation
In brief
- National Grid bought 73 acres of Teesworks-owned land at Dorman Point
- The substation is expected to add more than 1 GW of new capacity
- Mayor Ben Houchen and other local stakeholders say the site could take up to 3.2 GW
- A private-wire network from the substation would feed a planned AI datacentre
- No datacentre operator has committed to the Teesworks site yet
What National Grid bought
National Grid Electricity Transmission finalized the purchase of approximately 29.5 hectares (73 acres) on land owned by Teesworks, a local private-public partnership. The land agreement was reached in late October 2026. An outline planning application had gone to the local authority in September.
Community consultation is expected to close by November 11, 2026.
The project is expected to add more than 1 gigawatt of new electrical capacity. Tees Valley Mayor Ben Houchen is among the local stakeholders who've said the site could eventually accommodate up to 3.2 GW (that higher figure is their estimate, not a committed spec).
Why the AI datacentre matters
The substation falls under National Grid's Great Grid Upgrade, its program to expand and modernize the transmission network. It's designed to feed an emerging private-wire network serving the nearby AI datacentre and a battery energy storage system.
So why Teesside? Teesworks is billed as Europe's largest brownfield site, covering 2,500 acres, and about 10% of it is publicly owned by the South Tees Development Corporation. In 2025, the UK government identified Teesworks as a prime candidate for a substantial AI datacentre complex. Earlier applications described a campus of nearly 500,000 square meters (roughly 5.5 million square feet).
What isn't settled
Balfour Beatty and Steel River Power, a joint venture associated with Iberdrola, have shown interest in the prospect. Interest isn't a commitment, though.
The big open question in the report is whether a confirmed datacentre operator will commit to the Teesworks site. That hasn't happened yet, according to the report, so the substation's main customer is still unknown even with the land secured and the planning process underway.
Frequently asked questions
How much capacity will the Teesside substation add?
The project is expected to add more than 1 gigawatt of new electrical capacity. Tees Valley Mayor Ben Houchen and other local stakeholders have said the site could eventually accommodate up to 3.2 GW.
Has a datacentre operator committed to the Teesworks site?
No operator has been confirmed. Balfour Beatty and Steel River Power, a joint venture associated with Iberdrola, have shown interest. Whether a confirmed datacentre operator commits to the site is still an open question, according to the report.
