Drax and Brookfield plan £20bn AI data centre in Yorkshire

Drax has partnered with Brookfield and AI infrastructure company Radiant to develop a data centre with more than one gigawatt of potential capacity at its North Yorkshire power station, in a project that could attract over £20 billion in investment.

Announced on 3 November, the development at Drax Power Station will be delivered in phases, with the initial investment potentially reaching £2.5 billion. The project is backed by Brookfield’s AI infrastructure joint venture with Qatar-based Qai, which will provide funding.

The first phase is targeting up to 100MW of capacity, with commercial operations expected to begin in the first quarter of 2028. A second phase aims to increase capacity to 500MW between 2028 and 2031, with further expansion planned after that.

However, the initial development remains subject to planning, regulatory and network approvals, as well as securing a suitable tenant and final investment decisions from the partners.

Drax will contribute land, power and grid access through the power station’s existing four-gigawatt connection. The 1,000-acre estate has 2.6GW of active dispatchable generation capacity, alongside cooling systems and proximity to the UK’s fibre network.

The first phase will draw electricity directly from the grid, with the partners seeking to use existing infrastructure to accelerate development. The project is intended to provide computing capacity for British researchers, businesses and other organisations seeking access to AI infrastructure in the UK.

Drax chief executive Will Gardiner said the development could help secure the long-term future of the site, protect hundreds of jobs and maintain its contribution to UK energy security.

He added that the project could become one of the UK’s largest data centres if built in full, attracting international investment and supporting economic growth in the North.

The announcement comes as the Government seeks to accelerate the development of strategically important data centres through its new Data Centre Covenant, which aims to improve access to power and planning support. The partners said their initial assessment suggested the Drax proposals aligned with its criteria, including energy security, environmental standards and local economic benefits.

Radiant chief executive Mahdi Yahya said the partnership would expand the company’s UK AI computing footprint, giving British researchers, start-ups and enterprises access to advanced computing capacity domestically.

The partners expect to establish a voluntary community benefits fund, developed in consultation with residents around the site. A public consultation is expected to begin shortly, with Drax targeting the start of the formal planning process in the coming months.