BusinessNov 3, 2026, 6:53 AM UTC·1 min read

National Grid Plans Huge Teesside Substation for AI Data Centers

National Grid has agreed to buy 29.5 hectares at Teesworks for a proposed substation that could become the UK's largest, to power AI data centers nearby.

Aerial view of an industrial site in Teesside where a large electricity substation is planned next to a proposed AI data center. — Image: اليوم السابع

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National Grid has agreed to buy a 29.5-hectare plot at Dorman Point, within the Teesworks site in Teesside, for a proposed electricity substation that could become the largest of its kind in the UK. The project is meant to supply power to AI-related data centers in the area.

The site sits close to a planned data center covering roughly 500,000 square meters. Local officials have spoken of capacity of up to 3.2 gigawatts to support data center investment in the region. The final design and delivery remain tied to later stages of the project.

Why data centers need grid projects

Data centers consume electricity to run processors, memory, networking and cooling systems, and demand climbs as companies build facilities to train and run AI models. Building one therefore involves more than constructing halls and installing servers: the grid must be able to deliver the required power and keep supply steady under varying operating conditions. That is why the project is tied to investment in the electricity network.

Available power has increasingly become a factor in where technology companies choose to invest, which makes the Teesside plan a useful illustration of the infrastructure behind new AI applications.

Support and objections

Supporters argue the project could attract technology companies and provide the infrastructure to host data inside the UK. The expansion of data centers also draws objections over land use, energy consumption and the effect on surrounding communities.

The substation has not been completed, and the planned data center has not started operating. The land deal is therefore a step in the development process, not evidence that new electrical or computing capacity has entered service.