National Grid has taken a step towards building Britain’s biggest electricity substation on Teesside, which could supply power to a vast neighbouring datacentre as the UK races to expand its AI infrastructure.

Last week, the company agreed to purchase 29.5 hectares (73 acres) of land at Dorman Point on a site owned by Teesworks, a local private-public partnership. The deal was first reported by Sky News.

The deal followed reports last year that the UK government had picked Teesworks as the site for a new artificial intelligence datacentre, and planning applications had been submitted for a project that would span nearly 500,000 sq metres.

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”, Matt Pearce, the head of land at National Grid, said.

“We are committed to working closely with our partners to progress the…