Drax has agreed a partnership with Brookfield and its AI infrastructure platform Radiant to develop a potential gigawatt-scale data centre at Drax Power Station in North Yorkshire, in a project that could attract more than £20bn of investment.

Brookfield, an alternative asset management firm, estimates the first phase alone could attract around £2.5bn of investment, including semiconductor chips. A joint venture between Brookfield and Qai, a subsidiary of the Qatar Investment Authority, will provide initial investment for the project.

The partners are targeting more than 1GW of data centre capacity at the site, with an initial phase of up to 100MW expected to become operational in the first quarter of 2028, subject to planning and regulatory approvals and securing a tenant.

The development will initially use the power station's existing grid connections, which provide 4GW of access, alongside its 2.6GW of dispatchable generation capacity. A second phase aims to add a further 500MW between 2028 and 2031, potentially using a behind-the-meter arrangement to supply electricity directly from the power station under long-term power purchase agreements. Further expansion is envisaged after 2031 that could see Drax’s biomass plant powering AI models.

Radiant will lead data centre design, customer engagement and commercialisation, while Drax will oversee land, planning and power integration. A planning application for the first phase is being prepared, with public consultation expected to begin in November.

Drax, a FTSE 250 renewable energy company based in Selby, North Yorkshire, said the project could help secure the long-term future of the power station, protect hundreds of existing jobs and create further employment across Yorkshire.

Chief executive Will Gardiner said: "This country has a unique opportunity to bring together AI leadership, energy infrastructure and industrial renewal to drive national growth. If constructed in full, this project could become one of the largest data centres in the UK, with the potential to attract billions in inward investment, supporting the north's reindustrialisation and strengthening sovereign AI capability.

"Drax Power Station is one of the few UK sites that can provide large-scale reliable power directly to data centre customers by utilising existing and underutilised generation capacity. We welcome the Government's recognition that strategically important data centres need faster access to power and planning. The priority now must be turning that ambition into delivery, so projects like this can move at the pace the UK needs to compete for global AI investment."

Brookfield head of AI infrastructure, Sikander Rashid, added: "Teaming up with Drax and Qai for this project represents a major opportunity for our AI infrastructure strategy. Our capital and deep operating capabilities will help accelerate the construction of a critical piece of sovereign AI, delivered by Radiant, our UK-headquartered compute infrastructure platform."

Drax shares rose 8.59% to 878.50p in morning trading.

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