Drax, a major UK power plant owner listed on the FTSE 250, has entered into a partnership with infrastructure investor Brookfield and AI platform Radiant to construct what would become the nation’s largest datacentre. The facility is projected to eventually reach capacity exceeding 1 gigawatt and could commence operations by early 2028, with full development anticipated to attract more than £20bn in total investment.
Initially, Drax will contribute land and facilitate access to the national power grid through existing connections at its North Yorkshire site. The company intends to transition toward directly powering the datacentre by the early 2030s, contingent on securing necessary regulatory approvals before 2031. The first operational phase is scheduled for the first quarter of 2028 and would feature up to 100 megawatts of compute capacity.
Drax leadership characterized the development as essential for securing the site’s long-term viability and preserving hundreds of jobs while supporting regional reindustrialization and strengthening national artificial intelligence capabilities. The announcement arrived weeks after the government released a draft national policy statement emphasizing datacentres’ fundamental importance to the economy, comparable to historical infrastructure like railways and electricity networks.
The power plant currently produces roughly 5% of UK electricity through biomass combustion, making it the country’s single largest carbon dioxide emitter. However, carbon accounting attributions remain disputed, with Drax asserting that equivalent emissions are offset through tree regrowth supplying the waste wood for biomass pellet production. Recent government statements indicated constraints on the facility’s future role, including reduction of subsidies by half between 2027 and 2031.
Market reaction to the announcement proved positive, with Drax’s equity value climbing approximately 9% on the London Stock Exchange to near £3bn. Industry observers have nonetheless raised concerns regarding grid capacity constraints and the potential requirement for supplementary generation sources, particularly fossil fuel-powered systems, to meet datacentre energy demands while maintaining the UK’s legally binding climate objectives.
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