National Grid has acquired land for what it says will be the biggest electricity substation in the UK, a site designed to power a million homes at once.
The land, spanning 73.3 acres, sits by the River Tees near Middlesbrough. The substation will have an initial electrical capacity of 1.44GW, with the potential to expand to 3.2GW in the future. Its initial capacity is scheduled to come into force by the end of 2029.
Part of the Great Grid Upgrade
National Grid's Matt Pearce described the land purchase as an "important step" in the company's 'Great Grid Upgrade', which it calls "the largest upgrade of the electricity grid in generations".
"It will support the growth of AI and digital technologies, and enable the region's next phase of industrial and economic development," he said.
Electrical substations connect power stations to businesses and homes.
Support for AI and industry
Tees Valley Mayor Ben Houchen said the substation could power large-scale industrial or manufacturing projects, and may also be used for AI data centres, which many see as key to the growth of the UK economy. He said the substation would mean the UK "can finally compete for those projects".
"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," he said.
"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. I'd much rather that was Teesside than Texas or Abu Dhabi."
Government backing for datacentres
The Government has just published a draft national policy statement on datacentres, describing them as "as fundamental to our economy as the railways and electricity networks on which we have long depended".
"We must take control over the development of datacentres in this country and ensure that the country and host communities benefit from them," it said.
Balfour Beatty is believed to be in line to deliver the Teesworks substation for National Grid, with the utilities firm Steel River Power (SRP) also heavily involved in the project.
