Drax, Brookfield and Radiant plan a data centre of more than 1GW at Drax Power Station
A first phase of up to 100MW is targeted for early 2028 at a cost of £2.5bn. Brookfield estimates total investment could pass £20bn if the North Yorkshire site is built out in full.
By Daily Oracles News Team2 min read
Drax wants to build a data centre on its power station estate in North Yorkshire, with a target of more than 1GW of capacity built in three phases.
The energy company said on Tuesday that it had signed an agreement to form a strategic partnership with Brookfield and Radiant, the UK-based AI infrastructure business that Brookfield backs. Money and operating expertise will come through Brookfield's AI infrastructure joint venture with Qai, a technology company based in Qatar. Ownership stakes were not disclosed.
Brookfield estimates the total investment, including the semiconductor chips, could exceed £20bn. The first phase accounts for £2.5bn.
How the phases would work
The first phase targets up to 100MW, with operations from the first quarter of 2028. It would take its electricity from the grid, managed by Drax through existing connections. Radiant would lead design and find customers, aiming to sign anchor tenants before building starts, while Drax would handle the land, power and planning.
That phase still needs planning consent, regulatory and network approvals, a suitable tenant, commercial agreements and a final investment decision from each partner.
A second phase would add 500MW between 2028 and 2031 and a third would follow after 2031. Both would draw power straight from the station's own generators, with the second phase supplied under a long-term power purchase agreement, subject to consents.
That second step depends on government. Drax's Contract for Difference, agreed in November 2025, covers about 6TWh of biomass generation a year from April 2027 to March 2031, roughly 30% of the station's baseload output. It includes a way for Drax to ask for up to 500MW to go to a data centre during that period, which needs the agreement of the government and the Low Carbon Contracts Company. They will weigh value for money, energy security and sustainability.
Drax said its role in supporting the UK's security of supply would not change.
Why this site
The estate covers more than 1,000 acres next to one of the country's largest substations. It has about 4GW of grid access and 2.6GW of active generation with cooling already in place, and sits close to the UK fibre network.
Drax argues that few UK sites can supply large amounts of reliable power directly to data centre customers. The partners said their early view was that the project meets the criteria of the government's new Data Centre Covenant, which cover energy security, benefits for local communities, environmental standards, reindustrialisation and secure infrastructure.
Will Gardiner, Drax's chief executive, said the project could rank among the UK's largest data centres if built in full. The partners said it would help protect hundreds of jobs.
Public consultation is expected to start in November, followed by the planning application. The partners also plan a voluntary community benefits fund, separate from any planning obligations.
