National Grid has agreed to purchase 29.5 hectares (73 acres) of land at Dorman Point on a site owned by Teesworks, a local private-public partnership, in a step towards building what would be Britain's biggest electricity substation. The deal, first reported by Sky News, could allow the substation to supply power to a vast neighbouring datacentre as the UK seeks to expand its AI infrastructure.
The purchase follows reports last year that the government had picked Teesworks as the site for a new artificial intelligence datacentre, with planning applications submitted for a project spanning nearly 500,000 sq metres. Matt Pearce, National Grid's head of land, said the deal reflected constructive work between those involved to enable vital infrastructure and would support growth in AI and digital technologies and the region's next phase of industrial and economic development. He said the company was committed to working closely with partners to progress the development as quickly as possible.
Ben Houchen, mayor of the Tees Valley combined authority, told Sky News that securing enough power quickly was the biggest problem for anyone trying to build a datacentre in the UK. He said having up to 3.2GW of capacity at the site would allow the country to compete for projects while the US, the Gulf and parts of Europe have moved ahead. Houchen added that if Britain is serious about having its own AI capability, with sensitive data stored safely on British soil, it needs somewhere to physically put it, and he would rather that were Teesside than Texas or Abu Dhabi.
The government has published a draft national policy statement on datacentres, describing them as fundamental to the economy as the railways and electricity networks on which the country has long depended. It said the UK must take control over datacentre development and ensure that the country and host communities benefit from them.
However, the rapid construction of datacentres in the UK has met strong opposition, with campaign groups protesting against planned developments in places including Auchtertool, a village north of Edinburgh, and Brick Lane in east London. In October, the Guardian reported that AI companies told ministers they had 12 months to head off public opposition to datacentres in the UK or risk US-style protests that could threaten their construction. Balfour Beatty, the London-listed infrastructure services group, was reported to be in line to deliver the Teesworks substation for National Grid, with utilities firm Steel River Power also heavily involved in the project. Both were approached for comment.
Sources: The Guardian Business.