National Grid plans massive new substation to support Teesside data center plans

National Grid is building the UK's largest electricity substation to provide power for a major data center and battery storage system.

It's buying 73.3 acres of land at Dorman Point on Teesside, a site owned by local private-public partnership Teesworks that sits directly beneath both 275kV and 400kV overhead electricity transmission lines.

"Agreeing this deal with National Grid is a significant milestone for Teesworks and reflects the scale of the opportunity here at the Teesworks site," said Chris Musgrave, chairman of Teesworks.

"Making this land available for what is expected to be the UK's largest substation is an important step in putting the infrastructure in place to support the next phase of industrial development across the site."

The substation's initial 1,440 MVA capacity is scheduled to come online by the end of 2029, and has been contracted to Steel River Power (SRP), which owns and operates the private electricity network across the estate.

SRP's existing network has a capacity of 360 MVA, with 200 MVA currently available to support businesses and projects at Teesworks.

"Everyone who's tried to build a data centre or large-scale advanced manufacturing, technological or energy-intensive industrial developments in this country knows the biggest problem is getting enough power to the site quickly," said Tees Valley Mayor Ben Houchen.

"Having a contracted 1.44GW capacity, with further expansion up to 3.2GW in the near future, means we can finally compete for those projects."

Planning permission for the substation was granted last summer, with BP pulling out of plans for a hydrogen power station on the site. The documents described a data center covering more than 462,000 square meters. The build will, said Teesworks, lead to thousands of local jobs.

"If Britain is serious about having its own AI capability and other advanced manufacturing technologies, 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," said Houchen.

Teesworks covers 2,500 acres, making it Europe's biggest brownfield site, and was identified as a possible location for a major AI data center in 2025.

The government is keen to encourage the building of data centers, with last month's Autumn Budget introducing a new Data Centre Covenant. This requires developers to pledge 'substantial' local investment, minimize water and power use, and create local jobs. In return, they'd get accelerated access to electricity connections.

"Having spent almost two decades working in the sector, I know how important access to power is in turning development ambitions into reality. For potential investors, having confidence that the energy infrastructure will be there to support their plans is crucial," said David Smith, chair of the South Tees Development Corporation (STDC).

"This agreement is a real boost to our ability to attract future investment and move towards the development corporation's long-term aims: bringing land back into productive use, creating opportunities for local people and ensuring the whole area benefits from regeneration for decades to come."