Teesworks sells land to National Grid for AI and data center development

Conceptional image of Teesside Node A Power Station | Image courtesy: Teesworks
November 3, 2026 at 4:58 PM GMT+8

Teesworks, the United Kingdom’s largest industrial zone, has agreed to sell 73.3 acres of land at Dorman Point to National Grid Electricity Transmission for the development of Teesside Node A (Teesside), which is expected to become the UK’s largest substation. The facility will be built by National Grid contractor Balfour Beatty, with its 1,440 MVA capacity contracted to Steel River Power (SRP), which operates the private electricity network across Teesworks.

According to a press release, the major new electricity substation planned for Teesside is expected to provide 1.44 GW of power by the end of 2029, strengthening the region’s ability to attract large-scale data centers, artificial intelligence, and advanced manufacturing projects.

Chris Musgrave OBE, Chairman, Teesworks Ltd, said, “Agreeing this deal with National Grid is a significant milestone for Teesworks and reflects the scale of the opportunity here at the Teesworks site. 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.”

“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, Ben Houchen, Mayor, Tees Valley. “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.”

Matt Pearce, Head of Land, National Grid, said, “Securing this land agreement is an important step forward in the development of the new substation. It reflects the constructive work between all those involved to enable this vital infrastructure which is part of The Great Grid Upgrade, the largest upgrade of the electricity grid in generations, and will support the growth of AI and digital technologies and enable the region’s next phase of industrial and economic development.”

The additional capacity was secured by SRP in 2024 and represents a significant increase over its existing 360 MVA network capacity, of which 200 MVA is currently available to businesses with potential for further expansion network capacity to 3.2 GW. The 73.3 acre site is located beneath existing 275 kV and 400 kV electricity transmission lines. Teesworks will carry out site remediation over the next six months before transferring the land to National Grid.

The development is part of National Grid’s Great Grid Upgrade, a program of investment designed to strengthen electricity infrastructure and accommodate rising demand. The new substation is expected to play a key role in supporting future industrial growth across Teesside, providing the high-capacity electricity supply needed by energy-intensive businesses and expanding digital infrastructure.