Drax and Brookfield plan $27 billion AI data center at UK biomass power station

Nov 3, 2026

On November 3, 2026, Drax Group announced a partnership with Brookfield and Radiant to build a major AI data center at Drax Power Station in North Yorkshire, England. Funded via a joint venture with Qatar's Qai, total investment could exceed £20 billion ($26.8 billion). The phased project aims for 100MW by early 2028, expanding beyond 1GW past 2031. To succeed, the project requires planning permission, government approval to divert biomass power, and an anchor tenant.

Project partnership and financing

▪Drax Group announced a partnership with Brookfield and Radiant to build an AI data center
▪Capital for the Drax AI data center project at Drax Power Station in North Yorkshire will be supplied through a joint venture between Brookfield and Qatar's Qai

Phased capacity expansion

▪A second phase of the Drax AI data center project at Drax Power Station aims to add 500 megawatts of capacity between 2028 and 2031
▪The Drax AI data center project at Drax Power Station aims to expand capacity beyond 1 gigawatt at the North Yorkshire site after 2031
▪Phase one of the Drax AI data center project at Drax Power Station targets up to 100 megawatts of capacity operational from the first quarter of 2028 drawing power from the grid

Biomass power supply and regulatory approval

▪Drax intends to supply up to 500MW directly to the Drax-Brookfield AI data center at Drax Power Station from its biomass generation plant under a long-term power purchase agreement
▪Redirecting biomass power to the AI data center at Drax Power Station requires approval from UK ministers and the Low Carbon Contracts Company under Drax's Contract for Difference agreement
▪JPMorgan analysts stated that the Drax-Brookfield data center deal increases the likelihood that Drax Power Station operates past its March 2031 UK subsidy expiration

Drax financial strategy and market response

▪Drax Group shares traded on the London Stock Exchange rose between 8.8% and 9% on November 3, 2026 following the Drax-Brookfield AI data center announcement
▪Drax Group has been seeking replacement revenue streams ahead of the March 2031 expiration of its UK government biomass subsidies

UK data center capacity and policy

▪The UK government estimated that all existing British data centers combined used approximately 2GW of electricity
▪The UK government moved to fast-track strategically important data centers by offering priority grid connections and planning support

Drax data center approvals and government support

▪UK Chief Secretary to the Treasury Emma Reynolds welcomed the proposed AI data center investment at Drax Power Station as a driver for job creation and British reindustrialization
▪The first phase of the proposed Drax AI data center at Drax Power Station in North Yorkshire requires planning permission, network approvals, and final investment decisions from partners

Community and employment impacts

▪Drax Group Chief Executive Will Gardiner stated that the Drax AI data center project could protect hundreds of jobs at the North Yorkshire site
▪Drax and its partners plan to launch a public consultation and establish a voluntary community benefits fund for local residents

Radiant role and compute capacity

▪Radiant will provide AI infrastructure expertise for the proposed AI data center project at Drax Power Station
▪Radiant CEO Mahdi Yahya stated that building the data center at Drax Power Station in the UK will provide British startups, researchers, and enterprises direct domestic access to frontier compute capacity