National Grid plans the UK’s largest substation for Teesside AI

Power is the pitch

The UK government selected Teesworks for an AI data centre last year, and planning applications have been submitted for the project. Houchen told Sky News that securing enough power quickly is the main challenge for data-centre builders in the UK.

He said the potential 3.2 GW would help Teesside compete for projects that have gone to the US, Gulf countries and parts of Europe while the UK waited for grid connections. Houchen also argued that the country needs infrastructure for domestic AI capacity and secure storage of sensitive data, and said he would rather see it built on Teesside than in Texas or Abu Dhabi.

Ben Houchen: ‘If Britain is serious about having its own AI capability … it needs somewhere to physically put it.’ Photograph: Mark Pinder/The Guardian

Source: theguardian.com

Matt Pearce, National Grid’s head of land, said the agreement came from collaboration among the project’s participants. He said the infrastructure would support AI and digital technology, as well as the next stage of industrial and economic development in the region. National Grid plans to work closely with its partners to move the project forward as quickly as possible.

The local case for data centres

The government’s draft national policy statement on data centres, published last week, says they are as important to the economy as railways and electricity networks. It also says the government should control their construction and ensure they benefit the country and local communities.

That case is being tested by opposition to proposed data centres across the UK, from Auchtertool, north of Edinburgh, to Brick Lane in east London. In October, The Guardian reported that AI companies had warned ministers they had 12 months to prevent public opposition from growing. Otherwise, they said, US-style protests could threaten construction.

What the announcement leaves open

Balfour Beatty, the London-listed UK infrastructure group, is reportedly set to build the Teesworks substation for National Grid. Utility company Steel River Power is also closely involved. Balfour Beatty and SRP were asked to comment.

I think the project’s strongest argument is also its most immediate test: power capacity can make Teesside more competitive, but it does not settle whether the data centre will win local support. The announcement says little about how the project will address that resistance, even as the government says communities should benefit.