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The proposed substation could be Britain’s biggest. Tees Valley’s mayor says up to 3.2GW of capacity would help the region compete for data-centre investment, but neither facility is operating.
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Power availability remains the key hurdle for the proposed Teesside data-centre buildout. National Grid agreed last week to buy 73 acres from Teesworks for a proposed substation, but the deal advances a project; it does not mean the facility is built or electricity is already available. Mayor Ben Houchen says potential capacity of up to 3.2GW could help attract major data-centre investment. Balfour Beatty is reportedly in line to build the substation, though no construction award has been confirmed.
Planning applications cover nearly 500,000 square metres of data-centre space at Teesworks, after reports last year that the UK government had selected the site for a new AI data centre.
National Grid land chief Matt Pearce said the company would work with partners to progress the development as quickly as possible.
Houchen argues that domestic AI infrastructure and secure storage for sensitive data are reasons to keep projects in Britain rather than place them in Texas or Abu Dhabi.
A planned AI data centre on Teesside could get its power from what may become Britain’s biggest electricity substation. National Grid has agreed to purchase 73 acres at Teesworks’ Dorman Point for the proposed facility—a land deal that advances the infrastructure project, rather than delivering electricity to an operating data centre.
The agreement was reached last week, The Guardian reported on November 1. The land belongs to Teesworks, a local public-private partnership. Sky News first reported the deal, which places National Grid’s proposed substation beside a neighbouring data-centre project.
Planning applications have been submitted for a Teesworks data-centre project covering nearly 500,000 square metres. The land agreement follows reports last year that the UK government had selected Teesworks for a new AI data centre. Those plans provide the potential neighbouring demand for the proposed electricity infrastructure.
National Grid’s head of land, Matt Pearce, said the agreement would support AI and digital technologies alongside the region’s next phase of industrial and economic development. He said the company was committed to working with its partners to progress the development as quickly as possible.
Everyone who has tried to build a datacentre in this country knows the biggest problem is getting enough power to the site quickly.
Ben Houchen, Tees Valley mayor, speaking to Sky News, as quoted by The Guardian
Houchen said having up to 3.2GW of capacity would allow the area to compete for major data-centre projects. That is the mayor’s account of potential capacity, not electricity already available from a completed substation. He argued that the US, the Gulf and parts of Europe had been attracting investment while British projects waited for power.
His case also rests on keeping AI infrastructure in Britain. Houchen said a country seeking its own AI capability and secure domestic storage for sensitive data needs somewhere to physically put it. He presented Teesside as an alternative to locating that infrastructure in Texas or Abu Dhabi.
On delivery, Balfour Beatty is reported to be in line to build the substation for National Grid, with Steel River Power also heavily involved. The Guardian approached both companies for comment. Balfour Beatty’s role remains a reported prospect, rather than a confirmed construction award.
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