Drax has agreed to develop a major artificial intelligence data centre at its North Yorkshire power station with investment group Brookfield and its UK-headquartered infrastructure platform Radiant, in a partnership that could attract more than £20bn in total investment.
The development would use existing land, electricity connections and generation infrastructure at the Drax Power Station estate to support more than one gigawatt of data centre capacity. Brookfield estimates that the initial phase alone could involve £2.5bn of investment, although the scheme remains subject to planning, commercial and regulatory approvals.
The partners intend to develop the site in stages, beginning with a data centre of up to 100 megawatts. That first phase is targeting commercial operations during the first quarter of 2028. Further expansion between 2028 and 2031 could add substantial capacity, with additional development envisaged beyond 2031.
Brookfield will provide investment and operational capabilities through its joint venture with Qai, while Radiant will contribute specialist AI infrastructure expertise. Drax will bring land, power infrastructure and access to an established industrial site. The arrangement gives the three businesses complementary roles in the proposed development, rather than placing responsibility for every aspect of delivery with the power generator.
The Drax estate covers approximately 1,000 acres and benefits from a grid connection with capacity of 4GW. Its existing electricity generation facilities provide 2.6GW of dispatchable capacity, alongside cooling infrastructure and access to communications networks. These features could shorten some of the preparation required for a large data centre compared with developing an entirely new industrial location.
Electricity availability has become an important constraint on data centre development as operators seek sites capable of supporting increasingly intensive AI computing equipment. Large facilities need both substantial electrical connections and reliable supporting infrastructure. Grid access, cooling capacity and the timing of planning decisions can affect when a project becomes commercially viable.
The initial data centre phase is expected to draw electricity directly from the grid. Drax’s existing generation assets form part of the wider site’s infrastructure, but the proposed operating arrangements will require further commercial agreements and network approvals before construction can proceed.
The investment estimate also needs to be understood in the context of the intended development. Brookfield’s figure exceeding £20bn relates to the potential full project and includes semiconductor chips, rather than representing a committed construction budget or expenditure already secured.
For the first phase to proceed, the partners must obtain planning permission, relevant government and network approvals, and a suitable tenant. Each participant must also complete the necessary commercial agreements and make its own final investment decision. The project therefore establishes a substantial development ambition without guaranteeing that the complete investment programme will take place.
Drax says the proposed development could support the long-term future of its North Yorkshire operations and protect existing employment at the site. The company also expects the partnership to provide opportunities for industrial activity and investment in the surrounding region, although the number of additional jobs and the scale of local procurement have not yet been established.
Community consultation is expected to begin before the formal planning process. The partners also intend to develop a voluntary community benefits fund in consultation with local residents, separate from any obligations that might arise through the planning system.
The project brings together two increasingly important areas of British infrastructure investment: electricity generation and high-capacity computing. Its first major milestones will be the submission of detailed plans, the securing of a suitable customer and agreement on the electricity and commercial arrangements needed to make the initial 100MW phase operational.
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