Drax Power Station could host a £20 billion AI data centre under a new Brookfield and Radiant deal

Drax Group has signed an agreement with Brookfield and AI infrastructure company Radiant to develop a data centre at Drax Power Station in North Yorkshire that could eventually exceed 1 GW of computing capacity. Brookfield estimates total investment could exceed £20 billion, a figure that includes the cost of semiconductor chips and other computing equipment, with about £2.5 billion for the first phase. Reuters put the headline figure at $26.8 billion.

The first phase targets up to 100 MW, drawing power from the national grid through existing infrastructure, with commercial operations targeted to begin in early 2028. Drax said that timing is subject to planning, regulatory and network approvals, customer commitments and final investment decisions by the partners. No final investment decision has been announced. A planning application is being prepared and, according to Yahoo Finance UK's account of the announcement, public consultation is expected to begin in November 2026.

Why the power station

Drax is contributing land, electricity integration and planning. The site covers more than 1,000 acres, sits beside one of the UK's largest substations, and has about 4 GW of grid access and 2.6 GW of dispatchable generation, according to the Yahoo Finance UK report. Radiant leads design, customer engagement and commercial development, including anchor customer commitments. Brookfield provides capital through a joint venture with Qatar's Qai established in 2025.

Later phases are where the power station itself comes in. As reported by Yahoo Finance UK, a second phase of about 500 MW is envisaged for 2028 to 2031 with behind-the-meter supply from Drax's generators under a long-term power purchase agreement, subject to approvals from the UK Government and the Low Carbon Contracts Company. A third phase would be evaluated after 2031. Drax describes the expansion plans as ambitions rather than committed developments, and says its existing generation and system services responsibilities would remain unchanged.

The subsidy context matters. In November 2025 Drax signed a Contract for Difference with the UK Government covering about 6 TWh a year of biomass generation from April 2027 to March 2031, which includes a mechanism to allocate up to 500 MW to a data centre during that period. JPMorgan analysts said the partnership could raise expectations that the station keeps operating after the scheme expires in March 2031, and that Brookfield's involvement adds credibility, Investing.com reported. Drax shares rose more than 8% on Tuesday.

What the partners said

Drax chief executive Will Gardiner said that if constructed in full the project could become one of the largest data centres in the UK, with the potential to attract billions in inward investment. The partners said they would set up a voluntary community benefits fund developed with local communities, separate from planning obligations and Drax's existing programmes. Investing.com noted the project aligns with the UK Government's new Data Centre Covenant, and Reuters reported that Britain is moving to fast-track strategically important data centres with priority grid connections and planning support.

What it means for energy and construction

For the energy, construction, HVAC and electrical trades, the Drax plan is a test of a model the UK has discussed more than it has built: siting compute next to existing dispatchable generation and a large grid connection rather than waiting for a new one. A 100 MW first phase is a conventional build. The 500 MW behind-the-meter phase would need a power purchase agreement, regulatory sign-off, and cooling and electrical infrastructure at a scale few UK sites have delivered. The timeline the partners have set runs through 2031, and each stage carries its own approvals.