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Drax proposes AI data center at Yorkshire power station

Brookfield estimates the project could attract more than £20 billion, including chips, while its first stage still requires a tenant and approvals.

By Mei Ling Tan

Illustration of server racks beside electricity infrastructure
Photo: TNW (Financial Times)

An AI data center proposed for Drax’s North Yorkshire power station could eventually provide computing capacity exceeding 1GW, the company said. Drax is developing the proposal with Brookfield and its UK-based AI infrastructure business, Radiant.

Brookfield estimates that investment, including chips, could exceed £20 billion. The proposed first stage would receive £2.5 billion through a venture pairing Brookfield with Qatar Investment Authority subsidiary Qai. That stage targets capacity of up to 100MW starting in early 2028.

Construction cannot begin without several conditions being met. The initial stage requires a tenant, planning permission, grid and regulatory approvals, and final investment decisions by all partners. Radiant intends to seek anchor customers before work starts.

The initial development would draw electricity from the national grid. For the second stage, Drax aims to supply power directly from its generators under a long-term agreement, supporting another 500MW during 2028–2031. Additional capacity is envisaged after 2031.

Direct electricity supply requires government permission. Under its biomass subsidy contract covering April 2027 to March 2031, Drax can seek authorization to supply a data center with up to 500MW. The government and the Low Carbon Contracts Company would evaluate the proposal for its sustainability, implications for energy security and value to consumers.

The estate houses Britain’s largest power station and has approximately 4GW of grid access alongside 2.6GW of generating capacity. Bloomberg reported that Drax is seeking to repurpose an existing 100MW export connection with the grid operator. The partners also intend to establish a voluntary community fund.

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