National Grid agrees to buy 73 acres for AI

National Grid agreed to buy 73 acres on Teesside for what would be Britain's biggest substation, The Guardian reported on the 1st of November 2026. Sky News first reported the deal.

A substation is a site that turns high power from the grid into power that buildings can use. This one could supply a huge AI data centre next door.

Where it is

The land is at Dorman Point, on a site owned by Teesworks, a local public and private group. Reports last year said the government picked Teesworks for a new AI data centre, The Guardian said.

Plans for the data centre cover nearly 500,000 square metres, the paper said.

Power for AI

Tees Valley mayor Ben Houchen said getting enough power quickly is the biggest problem for data centres. He said up to 3.2 gigawatts here means the area can finally compete.

National Grid's head of land, Matt Pearce, said the deal will support the growth of AI.

Pushback on data centres

The government recently said data centres are as important as railways and the power grid. But groups have protested plans in places from Scotland to east London, The Guardian said.

Building firm Balfour Beatty was reported to be in line to build the substation.

Below we break down the land

73 acres is 29.5 hectares, the paper said. That is about 40 football pitches, by our arithmetic.

What is confirmed and what is not

National Grid confirmed the land deal. The 3.2 gigawatt figure comes from the mayor, and planning approval is still needed.

Key facts

National Grid agreed to buy 73 acres at Dorman Point on Teesside.

The substation could be Britain's biggest.

It could power a planned AI data centre next door.

The mayor said the site could take up to 3.2 gigawatts.