National Grid agreed to purchase 29.5 hectares (73 acres) of land at Dorman Point, owned by Teesworks, to support the construction of Britain’s largest electricity substation on Teesside. This development follows reports that the UK government selected Teesworks for a new artificial intelligence datacentre, a project planned to cover nearly 500,000 sq metres.
Matt Pearce, the head of land at National Grid, stated that the deal “reflects the constructive work between all those involved to enable this vital infrastructure … and will support the growth of AI and digital technologies, and enable the region’s next phase of industrial and economic development.”
Ben Houchen, the mayor of the Tees Valley combined authority, told Sky News that having up to 3.2GW of capacity in the region allows the area to compete for major projects. Houchen added, “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 I’d much rather that was Teesside than Texas or Abu Dhabi.”
Last week, the government published a draft national policy statement on datacentres, describing them as “as fundamental to our economy as the railways and electricity networks on which we have long depended.”
The London-listed infrastructure services group Balfour Beatty was reported to be in line to deliver the Teesworks substation for National Grid, with the utilities firm Steel River Power (SRP) also heavily involved in the project.
