National Grid Buys 29.5 Hectares at Dorman Point for Britain's Biggest Substation

National Grid agreed to purchase 29.5 hectares at Dorman Point on Teesside for a substation that could supply power to a planned AI datacentre, the company said. The Guardian reported that the site, owned by Teesworks, would host Britain's biggest electricity substation.

National Grid's Dorman Point Land Purchase

National Grid struck the deal last week, and Sky News first reported it. The land sits on a site owned by Teesworks, a local private-public partnership. The purchase followed reports last year that the UK government had picked Teesworks for a new artificial intelligence datacentre, with planning applications submitted for a project spanning nearly 500,000 sq metres.

Matt Pearce, National Grid's head of land, said 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". He added: "We are committed to working closely with our partners to progress the development as quickly as possible."

Ben Houchen, mayor of the Tees Valley combined authority, told Sky News that the biggest problem for datacentre builders is getting enough power to the site quickly. He said up to 3.2GW of capacity at the site would let the region compete for AI projects. Balfour Beatty was reported to be in line to deliver the Teesworks substation for National Grid, with Steel River Power also heavily involved; both were approached for comment. National Grid awarded Balfour Beatty the first-phase contract for its Birkhill Wood 400 kV substation in East Yorkshire on 22 October, according to Shanghai Metals Market.

National Grid's Investment Programme

National Grid committed £11.6 billion of capital investment in FY2026, up 18% year-on-year, as the first tranche of an approximate £70 billion five-year investment programme through 2030/31, according to akta.pro company records. The same records show the company reported £5.7 billion in underlying operating profit for FY2026 and appointed Zoë Yujnovich, formerly of Shell, as group chief executive effective November 2025. National Grid is a London-headquartered electricity and gas utility, founded in 2005, with more than 10,000 employees.

National Grid's Recent Substation Moves

On 22 October, National Grid awarded Balfour Beatty the first-phase contract for the Birkhill Wood 400 kV substation in East Yorkshire, Shanghai Metals Market reported. A day earlier, South Holland District Council approved a National Grid 400kV substation at Weston Marsh by a 6-5 vote with two abstentions, Yahoo reported. On 29 October, MarketScreener reported that National Grid will invest up to £400 million to extend the Interconnexion France-Angleterre link to at least 2050.

What Comes Next for the Teesside Site

The government published a draft national policy statement on datacentres last week, describing them as "as fundamental to our economy as the railways and electricity networks on which we have long depended". National Grid Transco is set to report H1 2027 earnings on November 5, MarketBeat reported.