£100m AI data centre approved for Stockton on Teesside

Stockton Borough Council has approved plans for a £100 million AI data centre on Teesside, marking a significant investment in the region’s technology infrastructure. Latos Data Centres will develop the facility at Preston Farms Industrial Estate, with construction expected to begin by year-end and operations starting by 2028.

Context and Background

The Neural Data Centre project will consist of two commercial units, power plants, substations, and office facilities specifically designed to meet the demands of AI and advanced computing. Latos Data Centres’ managing director Andy Collin described the development as a “purpose-built factory” that is “future proof”, emphasising the company’s commitment to putting “Teesside back on the map” for cutting-edge technology.

The facility is projected to create 150 jobs and provide substantial support for local businesses throughout the region. Industry Minister and Stockton North Labour MP Chris McDonald praised the investment, stating it represents “exactly the kind of investment our community deserves - not just jobs for today, but skills and opportunities for the future.”

The announcement strengthens the North East’s position as an emerging AI hub, coming just two weeks after the government announced plans for an AI growth zone covering sites in Northumberland and Tyneside. However, the nearby Teesworks facility in Redcar was not included in the initial government announcement, with officials stating they are reviewing over 200 proposals.

Looking Forward

Agent Create Architecture highlighted that the centre would “assist with regeneration of the heavy industry industrial area for Teesside and the immediate environment”, positioning the region for economic transformation. The development represents a strategic shift towards high-tech industries for an area historically known for heavy manufacturing.

McDonald emphasised the project’s significance for regional identity, noting that “Stockton, Billingham and Norton have always been places of industry and innovation, and now we’re leading again in a cutting-edge sector that underpins the modern economy.” The data centre will serve growing demand for AI infrastructure whilst establishing Teesside as a competitive location for technology investment.

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