National Grid has entered into an agreement with Teesworks, a local private-public partnership, to acquire over 70 acres of land at Dorman Point in Teesside for the construction of a major electricity substation. This substation will provide power to what is expected to be Europe’s largest data center complex, a project that has attracted significant interest from U.S. technology companies and AI-focused firms. The deal addresses a critical bottleneck in the UK’s infrastructure development, as grid connection delays have become one of the primary obstacles to industrial growth. The government has emphasized the importance of data sovereignty, stating that data centers are as fundamental to the economy as railways and electricity networks. The National Grid’s statement highlighted the project as part of ‘The Great Grid Upgrade,’ the largest electricity grid upgrade in generations, aimed at supporting AI and digital technologies. Tees Valley Combined Authority Mayor Ben Houchen praised the agreement, noting that it allows the UK to compete globally for data center investments, which have previously been captured by the U.S., Gulf states, and parts of Europe. The project is expected to create thousands of jobs and support the region’s industrial and economic development. Teesworks, which encompasses 2,500 acres, is Europe’s largest brownfield site, and the partnership has drawn scrutiny over its ownership structure and profit margins. The substation will be delivered by Balfour Beatty, with Steel River Power and Iberdrola’s North West Electricity Networks playing key roles. The government’s recent policy statement on data centers underscores the need for infrastructure that strengthens national sovereignty, protects billpayers, and benefits local communities. Despite concerns about pressure on local power and water supplies, the project is seen as a critical step in positioning the UK as a leader in AI infrastructure development.