A land agreement brings power closer to a proposed Teesworks data-centre campus. National Grid Electricity Transmission has agreed to buy more than 70 acres at Dorman Point. The planned Tees Dock substation is contracted to provide more than 1 gigawatt of import and export capacity, according to National Grid.
The land agreement is a step toward connecting the neighbouring development to the national transmission system. The purchase price has not been disclosed, and completion of the transaction has not been confirmed. National Grid has applied for outline planning permission, but a decision remains outstanding.
Brings Power Closer, With Approval Still Pending
The data-centre campus has detailed planning approval from Redcar and Cleveland Borough Council, granted in August 2025. Its approved plans cover 462,419 square metres, including 48 three-storey data halls and six office buildings. The substation application is at an earlier stage: National Grid submitted it in September 2026.
National Grid expects to consult on detailed proposals in spring 2027. Remediation and construction could begin in autumn or winter 2027, subject to approvals. The company has described the substation as part of The Great Grid Upgrade and says it would support digital technologies and regional development.
The South Tees Development Corporation had already identified Dorman Point as National Grid’s preferred site. Its March board papers said agreements among Teesworks Limited, Steel River Power and National Grid were progressing. About 60 per cent of the site had been remediated, those papers said.
Brings Power Closer to an Approved Campus
The data centre is planned for the Foundry area on land formerly occupied by the Redcar steelworks. The land became available in December 2025, when BP withdrew its rival H2Teesside hydrogen project for the same site. The campus investor has not been named.
Tees Valley mayor Ben Houchen has said the site could have up to 3.2 gigawatts of electricity capacity. That is a separate figure from the more than 1 gigawatt National Grid says is contracted at its substation. The 400kV figure describes the substation’s operating voltage, not its capacity.
Steel River Power owns and operates Teesworks’ private electricity network. It is a joint venture between Steel River Energy and North West Electricity Networks, part of Iberdrola’s group. The partners announced plans in October 2024 to invest more than £100m in the network. National Grid’s proposed substation would connect that estate network with the national system.
Balfour Beatty has been reported to be in line to build the substation, but no construction contract has been announced. Teesworks chairman Chris Musgrave said the next focus was remediation and preparing land for handover. How proceeds from the land sale would be shared has not been disclosed.
Public consultation on the substation application closes on 11 November. Redcar and Cleveland Borough Council’s target date for a decision is 24 December 2026. Those planning steps remain ahead before the proposed connection can move toward construction.
Related reading: another planned AI data centre in Nova Scotia; AI data centres and grid pressure; and approaches to data-centre power capacity.
Review North reported the land agreement.
