National Grid Inks $1.75B Deal for Europe’s Largest Data Centre Hub in UK

POLICY WIRE — Teesside, UK — National Grid has finalized a major agreement to facilitate the construction of the United Kingdom’s largest electricity substation on Teesside. This move comes as the British government seeks to capture a share of the surging global demand for artificial intelligence infrastructure.

The FTSE-100 energy infrastructure giant announced a $1.75 billion strategic minority investment in the power developer Joulent on Tuesday. The investment, executed through National Grid Ventures, supports a firm focused on creating dedicated power generation for hyperscale AI data centers.

The goal of Joulent is to deliver energy solutions far more rapidly than traditional utility interconnection processes allow. This financial backing follows less than a week after Engine No. 1 publicly introduced Joulent as a market entrant.

National Grid has been actively expanding its footprint to bolster the domestic data center sector. In September, the transmission operator entered a strategic partnership with Emerald AI, a startup backed by Nvidia. This collaboration aims to perform a live demonstration of the Emerald Conductor program within the UK.

A recent analysis conducted for the 2025 DFES update examined the rapid growth trajectory and regional impact of data centers within National Grid Electricity Distribution’s licence areas. The report evaluated geographical drivers for AI growth and the broader societal effects of these developments across Britain.

Addressing these industry shifts, UK Chancellor John Healey recently introduced the British Data Center Covenant. The policy mandates that operators invest in local communities, generate employment, and safeguard water resources. In exchange for meeting these standards, critical data centers will receive priority status for grid connections and the right to construct on-site power generation while waiting for network access.

Reporting by Policy-Wire (PW)>