Drax, Britain’s largest power plant and single biggest carbon dioxide emitter, has entered into a partnership with infrastructure investor Brookfield and AI platform Radiant to develop a major datacentre on its North Yorkshire site. The collaborative effort targets a facility with eventual capacity exceeding 1 gigawatt and could attract more than £20bn in total investment.
Under the initial phase of the arrangement, Drax will make available land and existing grid connections to support the datacentre project, with operations potentially commencing in the first quarter of 2028 with up to 100 megawatts of compute capacity. The company anticipates transitioning to direct power supply for the facility by the early 2030s, contingent on securing necessary regulatory approvals. Drax leadership characterized the development as critical to the site’s long-term viability and employment preservation, while contributing to regional economic revitalization and strengthening national AI capabilities.
The power plant, which generates approximately 5% of the UK’s electricity through biomass combustion, has faced increasing scrutiny regarding its environmental impact and subsidy arrangements. The government has indicated plans to substantially reduce Drax’s operational scope, limiting future subsidies to half their current level between 2027 and 2031. The company views the datacentre initiative as essential to securing revenue streams following these anticipated reductions in traditional power generation support.
The announcement coincided with government publication of a draft national policy statement positioning datacentres as critical infrastructure comparable to historical utility networks. Officials emphasized the need for domestic datacentre development while ensuring public and local community benefits. Nevertheless, industry observers have raised concerns regarding the capacity of the UK’s existing grid infrastructure and the potential reliance on alternative power sources, given the nation’s stringent legally binding climate commitments and current grid constraints.
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