Drax Group plc (DRX) has confirmed a strategic partnership with Brookfield and its UK-headquartered AI infrastructure platform Radiant to jointly develop, deliver and operate an AI data centre on the Drax Power Station estate in the north of England. The project targets more than 1GW of data centre capacity across three development phases, with Brookfield estimating total potential investment — including semiconductor chips — could exceed £20 billion. Phase 1 alone carries an initial investment target of £2.5 billion, with commercial operations targeted from early 2028, making this one of the most significant AI infrastructure announcements at a UK power generation site to date.

Key Points

  • Drax Group plc (DRX) — UK-listed biomass power generator operating Drax Power Station in North Yorkshire
  • Strategic partnership signed with Brookfield and Radiant to develop a GW-scale AI data centre on the Drax Power Station estate
  • Phase 1 targets up to 100MW of capacity with operations from Q1 2028; total potential investment could exceed £20 billion across all phases
  • Investors should watch for planning application progress, anchor tenant commitments, and UK Government regulatory approvals

Phase 1 Targets 100MW Data Centre at Drax Power Station from Early 2028

The first phase of the project targets a data centre with up to 100MW of compute capacity on land identified within the Drax Power Station estate, utilising existing infrastructure to import power directly from the grid. Drax will manage power integration, land, and planning, while Radiant will lead design, customer engagement, and commercialisation. A planning application is being prepared and a public consultation process is expected to commence in November 2026. Progression of Phase 1 remains subject to planning, regulatory, and network approvals from Government and relevant agencies, as well as securing an acceptable tenant and each party taking a final investment decision.

Phase 2 and Phase 3 Ambitions Leverage Drax's 2.6GW Dispatchable Generation and CfD Agreement

Phase 2, spanning 2028 to 2031, targets an additional 500MW of data centre capacity using Drax Power Station's existing generation capabilities through a behind-the-meter power arrangement under a long-term power purchase agreement. Drax holds a Contract-for-Difference agreement signed with the UK Government in November 2025 covering approximately 6TWh of biomass generation per annum, which includes a mechanism permitting up to 500MW of capacity to power a data centre, subject to Government agreement. Phase 3, post 2031, targets further capacity expansion using the same model. In aggregate, all three phases could deliver GW-scale data centre capability at the site.

Drax Power Station's 4GW Grid Access and 1,000-Acre Estate Underpin the Partnership's Rationale

The Drax Power Station estate spans over 1,000 acres and benefits from approximately 4GW of grid access, 2.6GW of active dispatchable generation, cooling systems, and proximity to the UK fibre network — characteristics the announcement identifies as making the site well suited for large-scale data centre development alongside continued power generation. The partnership also draws on investment capital from the Brookfield-Qai AI infrastructure joint venture, announced in 2025. The partners expect to establish a voluntary community benefits fund for communities surrounding the site, separate from any planning obligations.

Multiple Conditions Remain Before Construction Can Begin on the Drax AI Data Centre

Despite the scale of ambition, the announcement makes clear that several material conditions must be satisfied before Phase 1 construction commences. These include obtaining necessary planning, regulatory, and network approvals, securing an acceptable anchor tenant, completing commercial negotiations, and each party reaching a final investment decision. Phases 2 and 3 are described explicitly as ambitions rather than confirmed commitments. Investors may be watching closely for updates on the planning consultation process expected to begin in November 2026 and any announcement regarding anchor customer commitments, which Radiant is tasked with securing prior to initiating construction.