National Grid Electricity Transmission has agreed to acquire land at Dorman Point, within Teesworks in Teesside. The site will host the proposed National Grid’s Teesside substation to support a major data centre.
The agreement marks a key step towards delivering the high-voltage infrastructure needed for energy-intensive computing in northeast England.
The National Grid’s Teesside substation is expected to operate at 400kV and provide more than 1GW of contracted import and export capacity.
Although the development has been described as potentially the UK’s largest substation, the separate figure of up to 3.2GW cited by the Tees Valley mayor refers to the wider site’s potential power capacity. It should not be treated as the confirmed capacity of this individual substation.
The UK’s wider investment in electricity infrastructure is also reflected in Balfour Beatty’s £192 million contract to upgrade power infrastructure supporting improvements to the national electricity network.
National Grid Teesside Substation Project Advances For Major Data Centre
The proposed development is located at Dorman Point on the south bank of the River Tees, within the wider Teesworks industrial regeneration estate.
National Grid Electricity Transmission has agreed to purchase approximately 29.5 hectares of land to accommodate the substation. The land agreement is intended to help address one of the major constraints facing large data centre developments in the UK.
The planned data centre is expected to occupy the former Redcar steelworks area known as the Foundry site. Planning information reported in November 2026 identifies a proposed campus with approximately 462,419 square metres of floorspace, including 48 three-storey data halls and six office buildings. However, the data centre’s ultimate operator and investment partner have not yet been publicly confirmed.
The National Grid’s Teesside substation is intended to connect the development to the existing 400kV Lackenby–Norton overhead transmission line.
National Grid’s preferred design reportedly involves an indoor substation using gas-insulated switchgear without sulphur hexafluoride (SF₆). This approach could reduce the site footprint compared with conventional outdoor equipment, while avoiding the use of SF₆, a potent greenhouse gas commonly used in electrical switchgear. The final design remains subject to the planning process.
Planning And Construction Timeline
National Grid submitted an outline planning application to Redcar and Cleveland Borough Council in September 2026 under reference R/2026/0711/OOM. The application remains an important milestone before construction can proceed. Further detailed design work and planning approvals are expected to follow.
The indicative programme reported in November 2026 envisages public consultation on the detailed design in spring 2027, followed by a further planning application. Land remediation and construction could begin in autumn or winter 2027, subject to the necessary approvals. These dates are indicative rather than a confirmed construction schedule.
The land purchase agreement also does not mean that the substation is already under construction. National Grid and the landowners must complete the relevant transaction and prepare the site for the proposed infrastructure. Remediation will be particularly important because the wider Teesworks estate occupies a former heavy industrial area.
Balfour Beatty and Steel River Power involvement
Balfour Beatty will deliver the substation. Steel River Power is also expected to play a role in the project’s wider electrical infrastructure. However, a final construction contract and confirmed delivery appointment had not been publicly announced in the reporting reviewed. These organisations are prospective participants, rather than confirmed contracted members of the project team.
Steel River Power owns and operates the private electricity network serving Teesworks. The company has stated that it plans to expand network capacity by a further 1,440MVA by October 2029. Its existing connections to the National Grid transmission system and its industrial power infrastructure could help support new energy-intensive businesses at the estate.
The proposed substation would form part of a wider electricity infrastructure system serving the planned data centre and potentially a battery energy storage facility. The arrangement is intended to connect large power users with the transmission network and support future industrial development across Teesside.
Economic Impact And Regional Development
The proposed data centre and its supporting electrical infrastructure could attract substantial investment to the region. Tees Valley Mayor Ben Houchen has cited potential power capacity of up to 3.2GW across the wider site, presenting Teesside as a possible destination for major artificial intelligence and cloud computing operators. That figure is distinct from National Grid’s contracted capacity of more than 1GW for the proposed substation.
The wider development could create opportunities for civil engineering contractors, electrical equipment suppliers, construction workers, maintenance specialists and local service businesses. The project could also strengthen the region’s industrial base by reusing former steelworks land for digital infrastructure.
Nevertheless, the anticipated economic benefits depend on securing a data centre investor, completing the substation and associated connections, and delivering the wider campus. The project’s final employment figures and overall capital investment have not yet been confirmed publicly.
Project Fact Sheet For National Grid Teesside substation
Project: National Grid Teesside 400kV substation
Location: Dorman Point, Teesworks, Teesside, northeast England
Project type: High-voltage electricity transmission infrastructure
Developer/operator: National Grid Electricity Transmission
Site area: Approximately 29.5 hectares
Operating voltage: 400kV
Reported contracted capacity: More than 1GW of import and export capacity
Planning application: R/2026/0711/OOM
Indicative construction start: Autumn or winter 2027, subject to approvals
Reported potential construction contractor: Balfour Beatty
Associated infrastructure company: Steel River Power
National Grid Teesside Substation Project Team
National Grid Electricity Transmission
Teesworks
Steel River Power
Balfour Beatty
Redcar and Cleveland Borough Council
Leave a Reply