Summary

• Drax, Brookfield, and Radiant have agreed to pursue more than 1GW of AI data centre capacity at Drax Power Station in North Yorkshire.
• The first phase targets up to 100MW from early 2028, with potential investment of £2.5 billion; total investment, including computing equipment, could exceed £20 billion.
• Subsequent phases could use electricity supplied directly from Drax generation, subject to government consent, commercial agreements, and further investment decisions.

British energy company Drax has agreed a partnership with Brookfield and AI infrastructure company Radiant to develop more than 1GW of data centre capacity at Drax Power Station in North Yorkshire, connecting the site’s established electricity infrastructure with plans for a substantial computing development.

The agreement, announced on 3 November, combines Drax’s land, grid access, and generation capabilities with Radiant’s expertise in developing computing infrastructure. Brookfield intends to provide investment backing through its AI infrastructure joint venture with Qatar’s Qai.

The partners plan an initial development of up to 100MW, targeting commercial operations from the first quarter of 2028. Further phases could add around 500MW between 2028 and 2031, with additional capacity after 2031 potentially taking the complete project beyond 1GW.

Brookfield estimates that total investment associated with a completed development could exceed £20 billion, including semiconductor equipment, while the first phase could involve approximately £2.5 billion. The figures describe potential investment rather than an amount unconditionally committed to construction.

Progress depends on planning permission, regulatory and network approvals, acceptable commercial agreements, an anchor customer, and final investment decisions by the partners. Construction of the proposed data centre has not yet been authorised.

Existing infrastructure influences the development

Drax Power Station occupies an estate of approximately 1,000 acres near Selby. The site has around 4GW of grid access, 2.6GW of active dispatchable generation capacity, established cooling infrastructure, and proximity to major fibre networks.

These assets provide several of the physical requirements associated with large data centres. Computing facilities need reliable electricity, suitable land, telecommunications connections, and systems capable of removing the heat produced by servers.

Obtaining these services can be difficult where projects are proposed on sites without established industrial infrastructure. New electricity connections may require network reinforcement, while cooling and telecommunications installations can introduce further costs and development work.

Reusing a location with existing infrastructure may reduce some of those requirements, although the suitability of individual assets still needs to be established through engineering and regulatory assessments.

Drax’s grid connection is substantial, but its headline capacity should not be confused with electricity already available for unrestricted data centre consumption. Existing generation, network agreements, system requirements, and future commercial arrangements determine how the connection can be used.

The first phase is intended to draw electricity directly from the grid through existing infrastructure, with Drax managing power integration and the arrangements associated with the site.

Radiant will lead design, customer engagement, and commercial development, seeking commitments from an anchor customer before construction begins. Securing that customer is an important commercial milestone because the project requires substantial capital before computing services can generate revenue.

Later phases could draw directly from generation

The partners are examining a different electricity arrangement for the second phase, potentially providing around 500MW of computing capacity through power supplied directly from the generation facilities at Drax.

The proposed approach is described as behind-the-meter supply, in which electricity generated at the site could be delivered to nearby computing infrastructure through a dedicated arrangement rather than relying entirely on conventional grid supply contracts.

Drax expects this phase to involve long-term power purchase agreements, potentially providing a contractual basis for electricity supply over an extended period.

Such arrangements can give a data centre operator more certainty over part of its energy requirements, while providing the generator with a customer for substantial volumes of electricity. Their practical value depends on the agreed pricing, availability commitments, and the costs associated with connecting and operating the facilities.

The proposed arrangement must also account for Drax’s existing obligations to the national electricity system. The power station provides dispatchable generation and other system services, meaning that changes in how its electricity is used can have consequences beyond the individual project.

In November 2025, Drax signed a Contract for Difference agreement covering biomass generation between April 2027 and March 2031. The arrangement provides for approximately 6TWh of annual generation and includes a mechanism through which Drax can request permission to allocate up to 500MW of capacity to a data centre.

That mechanism does not constitute advance approval. The Government and Low Carbon Contracts Company would need to assess a request, taking account of consumer value, electricity security, sustainability, and other relevant considerations.

The company’s ability to develop behind-the-meter supply therefore depends on regulatory agreement as well as the commercial case. The partnership does not establish that existing generating capacity has already been reassigned.

A third development phase after 2031 could provide additional data centre capacity using a similar electricity arrangement. Its size, timetable, and investment requirements remain subject to further development work.

The investment figure includes computing equipment

The potential £20 billion investment estimate reflects the scale of the proposed development and includes equipment installed within the facilities, not merely the cost of constructing buildings and electrical infrastructure.

AI data centres can require substantial expenditure on advanced processors, memory, networking equipment, cooling systems, and supporting power infrastructure. The computing hardware may account for a significant share of the investment, particularly where customers intend to operate large AI training or inference systems.

Equipment and buildings also have different replacement cycles. Servers and processors may be replaced or upgraded several times during the life of a facility, while electrical connections and other core infrastructure are intended to operate for much longer.

The total capital associated with a development can therefore differ substantially from the initial construction budget. Its eventual value will depend on the scale built, the computing equipment purchased, and customer requirements over successive phases.

The first phase’s £2.5 billion estimate remains conditional on technical design and investment approval. No detailed breakdown has been provided showing how that amount would be divided between construction, electrical systems, and computing hardware.

Radiant’s involvement gives the project a partner specialising in AI infrastructure, while Brookfield brings investment and asset management experience. The agreement divides responsibilities between the companies, but further commercial work will establish how the operating and financing arrangements function in practice.

Planning and community engagement come next

Drax is preparing a planning application for the initial development and expects public consultation to begin in November 2026.

The consultation will allow local stakeholders to examine the proposed facilities, their physical footprint, construction requirements, and relationship with the existing industrial site.

Although the development would occupy an established power station estate, new computing facilities can create demands involving building works, equipment deliveries, electricity infrastructure, cooling, and ongoing maintenance.

Site-specific assessments will need to examine these matters alongside applicable environmental and planning requirements. The eventual arrangements may differ between the first phase drawing power from the grid and later phases proposed to use electricity directly from generation.

The partners also intend to establish a voluntary community benefits fund in consultation with local communities. The proposed fund would be separate from existing Drax programmes and any obligations imposed through planning permission.

Such an arrangement may provide a mechanism for supporting local projects, although its size, governance, and eligibility rules have not yet been announced.

The proposal sits within wider UK efforts to increase domestic AI computing capacity and accelerate delivery of strategically important infrastructure. The partners have indicated that their plans appear aligned with the Government’s Data Centre Covenant, which seeks to address barriers associated with electricity access and planning.

That policy alignment does not replace the approvals required for the development. The project’s location and existing infrastructure may provide advantages, but planning, power arrangements, and customer commitments must still be resolved.

Drax has identified the proposed data centre as a potential long-term use for its estate as the power station’s role develops. The immediate work concerns the first 100MW phase, with subsequent expansion dependent on the financial and operational performance of the earlier development.

The partnership establishes the organisations and infrastructure around which the project could be built. A confirmed anchor customer, approved planning application, agreed electricity arrangements, and final investment decisions will determine whether the proposed computing capacity progresses towards the 2028 operating target.