Drax Group has entered a strategic partnership with Brookfield, Radiant and Qai to develop and operate large-scale data centre infrastructure at Drax Power Station in North Yorkshire, UK. The proposed development could attract more than £20 billion in investment, with £2.5 billion potentially allocated to the initial phase.
The partnership aims to establish data centre capacity of more than 1 GW at the existing power station site, bringing together Drax’s energy infrastructure and land assets with the partners’ artificial intelligence (AI) and computing infrastructure capabilities.
Brookfield estimates that the overall development could exceed £20 billion in investment. The first phase is expected to involve up to 100 MW of data centre capacity, with operations targeted to begin in the first quarter of 2028.
The project is being backed by the Brookfield-Qai AI infrastructure joint venture. Radiant, Brookfield’s UK-headquartered AI infrastructure platform, will contribute to the development and operation of the computing infrastructure.
Three-phase development planned at Drax Power Station
The partners intend to develop the data centre infrastructure in stages, with the initial phase targeting up to 100 MW of capacity.
The proposed development schedule includes:
- Phase 1: Up to 100 MW, with operations targeted from the first quarter of 2028.
- Phase 2: An ambition to increase capacity to 500 MW between 2028 and 2031.
- Phase 3: Further expansion planned after 2031.
Progress on the first phase will depend on planning approval, regulatory and electricity network clearances, and the identification of a suitable tenant. The partners have indicated that community consultation will begin shortly, ahead of the formal planning process.
The proposed development is intended to use the existing power station estate, which covers approximately 1,000 acres and has 4 GW of grid access. The site also has 2.6 GW of active dispatchable generation capacity, alongside existing cooling infrastructure and proximity to the UK’s fibre network.
These characteristics are expected to support the development of large-scale data centre facilities and reduce some of the infrastructure requirements associated with establishing a new site.
Partnership links energy infrastructure with UK’s AI ambitions
The project is positioned as part of the UK’s wider effort to expand domestic AI computing capacity and attract investment in digital infrastructure.
The partners said the development could support the country’s AI capabilities while contributing to economic activity and employment in Yorkshire. Drax also expects the partnership to help secure the long-term future of the power station site and protect hundreds of existing jobs.
Drax Group CEO Will Gardiner said the project could help maintain the site’s role in the UK’s energy system while supporting regional growth and the development of domestic AI infrastructure.
Brookfield’s Head of AI Infrastructure, Sikander Rashid, said the partnership would combine the company’s investment capacity and operating experience with Drax’s existing infrastructure. Radiant CEO Mahdi Yahya said the project would expand the UK’s domestic computing capacity for researchers, start-ups and businesses.
The UK government has also welcomed the proposed investment. Chief Secretary to the Treasury Emma Reynolds said developments of this kind could contribute to reindustrialisation and employment in Yorkshire. Science, Innovation and Investment Minister Chris McDonald described the announcement as a sign of investor confidence in the UK and its technology sector.
Community consultation and planning process
The partners intend to establish a voluntary community benefits fund in consultation with residents around the Drax Power Station site. The proposed fund would be separate from existing planning obligations and Drax’s current community initiatives.
The project will also be assessed against the UK government’s Data Centre Covenant, which aims to support the development of strategically important data centre infrastructure. The partners said their initial assessment indicates that the plans align with its priorities, including energy security, environmental standards, local benefits and economic development.
The formal planning process is expected to begin after the initial community consultation. The project remains subject to the necessary planning, regulatory and network approvals, as well as securing a suitable tenant and progressing investment decisions.
Bioenergy Business Analysis
The proposed development highlights how existing energy infrastructure could be repurposed to support growing demand for electricity-intensive digital services. Drax Power Station’s land, grid access, generation assets and cooling systems provide an established infrastructure base for the planned data centre development.
The project’s longer-term implications for Drax’s generation operations will depend on how electricity supply is structured for the data centres, including the role of existing dispatchable generation, grid connections and any additional power requirements. The announcement does not yet provide details of the proposed electricity supply arrangements, energy consumption profile or potential changes to power station operations.
The proposed investment also reflects the growing relationship between energy infrastructure and AI development. As demand for computing capacity increases, access to reliable electricity, suitable land and grid connections is becoming an important consideration for data centre developers.
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