New electricity generating capacity would enable north-east to attract investment for major datacentre projects

National Grid has taken a step towards building Britain’s biggest electricity substation on Teesside, which could supply power to a vast neighbouring datacentre as the UK races to expand its AI infrastructure.

Last week, the company agreed to purchase 29.5 hectares (73 acres) of land at Dorman Point on a site owned by Teesworks, a local private-public partnership. The deal was first reported by Sky News.

The deal followed reports last year that the UK government had picked Teesworks as the site for a new artificial intelligence datacentre, and planning applications had been submitted for a project that would span nearly 500,000 sq metres.

The deal “reflects the constructive work between all those involved to enable this vital infrastructure … and will support the growth of AI and digital technologies, and enable the region’s next phase of industrial and economic development”, Matt Pearce, the head of land at National Grid, said.

“We are committed to working closely with our partners to progress the development as quickly as possible,” he added.

Ben Houchen, the mayor of the Tees Valley combined authority, told Sky News: “Everyone who has tried to build a datacentre in this country knows the biggest problem is getting enough power to the site quickly.

“While we’ve been stuck in the queue, the US, the Gulf and parts of Europe have been getting on with it and hoovering up the investment. 2GW of capacity here means we can finally compete for those projects.

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