Drax and Brookfield Unveil Plan for £20bn AI Data Centre in Yorkshire

An ambitious new use for a power station site

Energy company Drax has announced a partnership with investment firm Brookfield and AI infrastructure specialist Radiant to develop a large data centre at its power station site in North Yorkshire. The companies say the project could attract more than £20 billion of investment if it proceeds in full. The proposal would create a facility with capacity exceeding one gigawatt, reflecting the growing electricity demands of artificial intelligence and cloud computing. The headline figure is a potential investment value, not money that has already been spent.

What makes the location attractive?

The Drax site has extensive industrial land and a substantial existing grid connection. Those assets could make it easier to plan a large technology facility than starting from scratch in a location without established energy infrastructure. Under the proposed arrangement, Drax would contribute land, access to power and its grid connection, while Radiant would bring specialist data-centre expertise. Brookfield would help arrange capital through a joint venture involving Qatar's Qai.

When could it open?

The companies have discussed an initial phase worth about £2.5 billion, with commercial operations targeted for early 2028. However, that timetable depends on planning permission, regulatory and network approvals and final investment decisions. A proposed development of this scale can change significantly between announcement and construction. Residents should therefore treat the early opening date as a target rather than a confirmed launch.

Why it matters beyond Yorkshire

Demand for computing power has become an important issue for Britain's energy and technology industries. Large AI data centres require reliable electricity, cooling and high-capacity digital connections. Supporters argue that major developments can attract investment, construction activity and skilled employment. Others will want answers about electricity use, environmental impacts and how local communities benefit. The partners say they intend to develop a voluntary community benefits fund with local residents. Further consultation and detailed proposals will help determine what the scheme ultimately means for the region.

Questions the proposal still needs to answer

Several major questions remain open. Planning applications will need to explain the proposed building footprint, cooling systems, traffic effects and arrangements for electricity supply. The local workforce impact will depend on the balance between temporary construction jobs and permanent technical roles once the facility opens. Energy demand is another important consideration: a data centre's headline capacity does not necessarily mean it will consume that much electricity continuously, but the scale is still significant. Local residents and businesses should have opportunities to examine detailed plans when they become available. The partners have outlined an ambition rather than a finished project, and decisions by planning authorities and investors will determine how much of that ambition becomes reality. Future updates should be judged against those concrete milestones.

Source and image credit

Reporting: Reuters, 3 November 2026: https://www.reuters.com/business/uks-drax-signs-data-centre-deal-with-brookfield-radiant-2026-11-03/. Photo by Paul Clements on Pexels. Generic industrial power station photograph; not the proposed site.