National Grid to Build UK's Largest Substation on Teesside, Powering AI Datacentre

The Guardian AI · 2026-11-01
National Grid to Build UK's Largest Substation on Teesside, Powering AI Datacentre

National Grid has agreed to purchase 29.5 hectares (73 acres) of land at Dorman Point on Teesside, owned by Teesworks, to build what would be Britain's biggest electricity substation. The deal, first reported by Sky News, marks a significant step in the UK's efforts to expand its AI infrastructure. The new substation would provide the necessary power capacity for a planned adjacent datacentre, making the north-east an attractive location for major technology investments. This development underscores the growing energy demands of AI and the critical role of grid infrastructure in supporting digital economic growth. Teesworks, a private-public partnership, is central to this regional regeneration, and the substation could catalyse further industrial and technological development. As the UK races to secure its position in the global AI economy, projects like this are essential for ensuring reliable, high-capacity power supply. The move signals strong momentum in the north-east's transformation into a hub for next-generation computing.