Drax and Brookfield's Radiant plan GW-scale AI data centre at UK power station

what happened

Drax Group has signed an agreement to form a strategic partnership with Brookfield and Radiant, the AI infrastructure platform Brookfield runs from the UK, to build and operate an AI data centre on the Drax Power Station site in northern England, according to a company statement reported by Reuters. The partners are aiming for a campus above 1 GW.

The first stage, with up to 100 MW, would draw power straight from the grid and aim to start commercial operations in early 2028. It still depends on planning consent, regulatory and grid approvals, securing an anchor tenant and a final investment decision from each party. Brookfield puts the total potential investment, including chips, above £20 billion, with £2.5 billion in the first phase.

A second stage targets 500 MW between 2028 and 2031, using the plant's own generation under a behind-the-meter arrangement and a long-term power purchase deal, subject to consents. A third stage would add capacity after 2031. Drax already holds a contract-for-difference with the government covering biomass output through March 2031, which includes a mechanism to request up to 500 MW for a data centre.

why it matters

For Drax, the deal could turn part of its generation estate into a source of data-centre demand. That matters for a company whose earnings depend on power prices and government contracts. Planning decisions and the search for a tenant will be the key milestones, since the first phase relies on several approvals.

market impact

Drax shares: a planned data centre adds potential power demand for the company's site

• ▲Drax shares pressure up — a planned data centre adds future demand for power from its site

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