Drax signs AI data center partnership for North Yorkshire energy site – Unite.AI

Drax announced on 3 November 2026 that it had signed an agreement with Brookfield and Radiant to develop, deliver and manage AI data center capacity at the Drax power station in North Yorkshire, targeting more than 1GW in three phases.

Brookfield estimates that total potential investment, including semiconductor chips, could exceed £20 billion, with the first £2.5 billion forming part of Phase 1. Investment capital and operational capabilities will be provided through the Brookfield-Qai AI infrastructure joint venture.

Existing electrical infrastructure consolidates the plan

The proposal is based on the infrastructure already present in the power plant. The estate spans more than 1,000 acres and has approximately 4 GW of grid access, 2.6 GW of dispatchable active generation and cooling systems. Its proximity to the UK’s fiber network adds another requirement for large-scale IT development alongside terrestrial and electrical infrastructure.

The first phase targets up to 100MW of computing capacity and commercial operations starting in the first quarter of 2028. It would use existing infrastructure to import power directly from the grid, with Drax managing that supply.

The energy model will change in Phase 2, with an ambition to add 500 MW of capacity between 2028 and 2031. Existing Drax generation would provide 24-hour power directly to the data center under a long-term power purchase agreement. This behind-the-meter deal would be subject to necessary approvals. Phase 3 envisions additional capacity after 2031 using the same approach.

This phased structure separates the initial grid-connected development from the subsequent directed energy model. It also makes existing central station generation available for the proposed expansion rather than treating the project solely as a data center built next to a power plant.

Construction depends on clients and approvals

Radiant, Brookfield’s UK-based AI infrastructure platform, will lead design, customer engagement and commercialization. It will seek commitments with customers before construction begins, while Drax will lead land, electricity, and energy integration and planning.

Phase 1 remains subject to planning approval, regulatory and network approvals from government and relevant agencies, an acceptable tenant, commercial agreements and a final investment decision by each party. A planning application is being prepared, with public consultation expected to begin in November 2026.

The partners plan to establish a voluntary community benefits fund developed with the communities around the site. It would be separate and additional to Drax’s existing planning obligations and community initiatives.

Radiant CEO Mahdi Yahya said in the partners’ public announcement that the project will give “UK researchers, startups and businesses access to frontier computing at home.”

Energy contract and financing shape expansion

Subsequent phases intersect with Drax’s existing biomass agreements. In November 2025, Drax signed a contract for difference agreement with the UK Government covering approximately 6 TWh of biomass production per year from April 2027 to March 2031.

This agreement provides a mechanism that allows Drax to request up to 500 MW for the use of data centers during the contractual period. Such use would require an agreement with the UK Government and the Low Carbon Contracts Company, taking into account value for money for consumers, energy security and sustainability. Drax said the station’s role in supporting security of supply, providing low-carbon dispatchable energy and providing critical system services would remain unchanged.

The financial vehicle pre-dates the Yorkshire Agreement. Brookfield and Qai announced on December 9, 2025 their $20 billion joint venture to invest in artificial intelligence infrastructure in Qatar and select international markets, with both partners bringing capital and operational expertise. Qai is a subsidiary of the Qatar Investment Authority.

The agreement thus connects an established energy asset with a dedicated AI development platform and an existing investment vehicle. Its immediate test is execution: securing the tenant, approvals and final investment decisions needed for Phase 1, while any larger build must also align with Drax’s generation commitments and obtain the required consents.