A major land deal at Teesworks has paved the way for what is expected to become the UK's largest electricity substation, unlocking the power capacity needed to attract a new generation of AI, advanced manufacturing and energy-intensive industries to Teesside.

Teesworks has completed the sale of 73.3 acres of land at Dorman Point - on the former Redcar steelworks in Redcar - to National Grid Electricity Transmission, marking a significant milestone in plans to strengthen the region's electricity infrastructure and support future industrial growth.

The site will host Teesside Node A, a major new substation that will deliver an additional 1.44GW of power capacity to the Teesworks estate by the end of 2029. The land sits beneath existing 275kV and 400kV transmission lines, making it a strategically important location for the project.

The deal is being hailed as a crucial step in addressing one of the biggest barriers facing major industrial, technology and data centre developments across the UK - access to power.

Tees Valley Mayor Ben Houchen said securing the capacity would allow the region to compete for investment that might otherwise go overseas.

“Everyone who has tried to build a data centre or large-scale advanced manufacturing, technological or energy-intensive industrial development in this country knows the biggest problem is getting enough power to the site quickly,” he said.

“Having a contracted 1.44GW capacity, with further expansion up to 3.2GW in the near future, means we can finally compete for those projects.

“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, and I’d much rather that was Teesside than Texas or Abu Dhabi.”

The initial 1.44GW capacity, with potential expansion to 3.2GW in future, could provide enough electricity to support some of the country's most energy-hungry developments, including AI and digital infrastructure projects.

Chris Musgrave, chairman of Teesworks, described the deal as a “significant milestone” for regeneration programme.  

“Making this land available for what is expected to be the UK’s largest substation is an important step in putting the infrastructure in place to support the next phase of industrial development across the site,” he said.

Teesworks will now focus on delivering remediation works across the 73.3-acre plot ahead of handing the site over for construction.

The development forms part of National Grid's wider Great Grid Upgrade programme and is expected to play a key role in supporting both the growth of digital technologies and the next phase of industrial development in the region.

The substation’s initial 1.44GW capacity is scheduled to come online by the end of 2029, providing a major boost to electricity infrastructure at Teesworks.

At 1.44GW, this is equivalent to the power demand of Greater Manchester and Glasgow combined or the electricity needed for around 1.4 million homes.

The capacity is contracted to Steel River Power (SRP), which owns and operates the private electricity network across the estate.

SRP’s existing network has a capacity of 360 MVA (mega volt-amps), with 200 MVA currently available to support businesses and projects at Teesworks. The company has been contracted with National Grid since 2024 for an additional 1,440 MVA  (1,44GW) to meet the estate’s known future energy demand requirements as industrial development continues.

SRP is a joint venture between Steel River Energy Limited and North West Electricity Networks, part of the ScottishPower/Iberdrola group.