Drax, the operator of the UK’s largest power plant in North Yorkshire, has announced a major partnership with infrastructure investor Brookfield and AI platform Radiant to develop a large-scale datacentre on its existing site. The project represents a significant shift in the facility’s future operations and could attract more than £20bn in total investment.
Under the initial phase of development, Drax will provide land and existing grid connections to support the datacentre, with preliminary operations expected to commence in the first quarter of 2028. The facility is planned to eventually reach capacity exceeding 1 gigawatt, with initial phases offering up to 100 megawatts of compute capacity. Drax intends to begin directly powering the datacentre from its own generation by the early 2030s, pending regulatory approvals.
The move comes as the UK government has signaled intentions to reduce the power plant’s traditional generation role, partly due to longstanding scrutiny regarding its sustainability practices. Drax’s subsidy allocation from the government will be halved between 2027 and 2031. Company leadership described the datacentre development as securing long-term viability for the site while supporting regional industrial development and strengthening domestic AI infrastructure capabilities.
The announcement was positively received by market analysts, with Drax’s share price rising approximately 9% on the London Stock Exchange, bringing its market valuation to nearly £3bn. The timing coincides with the government’s recent publication of draft policy guidance emphasizing the strategic importance of datacentres to the UK economy. Nevertheless, industry observers have raised concerns about whether the nation’s existing electrical grid infrastructure and climate commitments can accommodate rapid datacentre expansion without increased reliance on alternative power sources.
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