Drax signed an agreement on 3 November 2026 with Brookfield and Radiant to build more than 1GW of AI data centre capacity at its North Yorkshire power station.
What the three phases involve
Drax said the project targets more than 1GW across three phases. Brookfield estimates total potential investment could exceed £20 billion, including semiconductor chips. One report puts the figure at about $26.8 billion.
Phase 1 includes the first £2.5 billion, about $3.4 billion.
Phase 1 targets up to 100MW of compute capacity, with commercial operations from Q1 2028. One report calls it the proof-of-concept moment for the wider plan.
Under that arrangement, power would be imported directly from the grid, with Drax managing the supply.
| Phase 1 | Phase 2 | Phase 3 | |
|---|---|---|---|
| Timing | Commercial operations from Q1 2028 | 2028 to 2031 | After 2031 |
| Power supply | Imported from the grid, managed by Drax | Existing Drax generation, direct supply under a long-term power purchase agreement | Same direct-power approach as Phase 2 |
Phase 2 aims to add 500MW between 2028 and 2031. Under a long-term power purchase agreement, existing Drax generation would supply the data centre around the clock.
The behind-the-meter arrangement in Phase 2 would be subject to the necessary consents.
Phase 3 envisages additional capacity after 2031, using the same direct-power approach.
The site would first connect to the grid, with direct power coming later. The proposed expansion would draw on generation already at the station.
Why the grid connection is the asset
Getting enough reliable power to a site is among the biggest obstacles to AI data centre development in Europe, Crypto Briefing wrote in its report on the Drax deal.
UK grid connections can take years to secure. Drax has an existing connection, the same report says.
The estate covers more than 1,000 acres, Drax says. It has about 4GW of grid access and 2.6GW of active dispatchable generation, plus cooling systems.
A station once valued mainly as an energy generator now carries added optionality as an anchor for a very large data centre investment, one report argues.
A Contract-for-Difference agreement between Drax and the UK government was signed in November 2025. It covers about 6TWh of biomass generation a year from April 2027 through March 2031.
During that period, Drax could seek up to 500MW for data centre use under the agreement. The request would require approval from the UK government and the Low Carbon Contracts Company.
Drax shares rose more than 8% after the announcement, one report said. It argues the rise reflects a higher valuation of the company's physical assets as part of AI infrastructure.
Who does what
Investment capital and operating capabilities will come through the Brookfield-Qai AI infrastructure joint venture. Qai's a subsidiary of Qatar Investment Authority.
Radiant will lead design, customer engagement and commercialisation. Before construction begins, it'll seek anchor-customer commitments.
One report calls Radiant Brookfield's UK-headquartered AI infrastructure platform. Another calls it a neocloud platform.
Radiant's chief executive, Mahdi Yahya, put the aim in one line.
British researchers, startups and enterprises access to frontier compute at home.
Drax will lead land, power integration and planning for the project. The station's roles in security of supply, low-carbon dispatchable power and critical system services would carry on unchanged, it said.
The partners expect to develop a voluntary fund for community benefits with communities near the site. It'd be additional to planning obligations and Drax's existing community initiatives.
What is still open
Phase 1 depends on planning approval and regulatory and network approvals from government and relevant agencies. An acceptable tenant, commercial agreements and a final investment decision from each party are also required.
Whether AI demand stays strong enough to justify 1GW of compute at a single UK site is also open. One report says the phased investment depends on that demand.
Any larger buildout would also have to meet Drax's generation commitments and secure the necessary consents. Phase 2's consents remain uncertain, as does agreement on the 500MW carve-out.
A planning application is being prepared, and public consultation on it is expected to begin in November 2026.
