Brookfield and Drax to Develop AI Data Center in North Yorkshire

Brookfield and Drax Group have entered into an agreement to jointly develop an AI data center at the Drax Power Station estate located in North Yorkshire, England.

Project Scope and Investment

The project is being developed through a partnership between Drax Group, Brookfield, and Radiant, which is described as Brookfield’s neocloud platform. According to Brookfield, the total potential investment for the project, which includes semiconductors, could exceed £20 billion ($26.8 billion).

The development is structured in several phases:

• Phase 1: This initial phase involves an investment of approximately £2.5 billion ($3.4 billion) and targets up to 100 megawatts of compute capacity. Commercial operations for this phase are expected to begin in the first quarter of 2028.
• Subsequent Phases: Between 2028 and 2031, the project aims to bring an additional 500 MW of capacity online.
• Long-term Goal: The project is looking to secure more than 1 gigawatt of capacity at the site by an unspecified date.

Infrastructure and Site Advantages

The Drax Power Station site offers specific infrastructure advantages for large-scale AI development. The power station currently possesses 4 GW of grid access and 2.6 GW of dispatchable biomass generation.

Securing grid connections in the United Kingdom currently takes years, but the Drax site already has an existing connection. This access is intended to help the project sidestep bottlenecks regarding reliable power supply that many AI data center developments face across Europe. The project would effectively turn a biomass power site into one of Europe's largest AI compute hubs.

Market Reaction and Funding

Following the announcement on Tuesday, London-listed shares of Drax Group rose by 8.2% in early morning trading. This surge reflects a re-rating of the company's physical assets within the context of AI infrastructure.

Regarding the financing of the initial phase, funding is expected to draw in part on a joint venture between Brookfield and Qatar’s QIA, a partnership that was established in 2025.

Why it matters

As Europe seeks to develop infrastructure to support the rollout of AI amid high energy and land costs, this project represents a significant investment in British energy infrastructure. The success of the long-term, £20 billion investment depends on whether AI demand remains strong enough to justify the planned 1 GW of compute capacity at a single location in the UK.

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Sources

• cnbc.com: Brookfield targets $27 billion AI data center at power station
• cryptobriefing.com: Brookfield targets $27B AI data center at Drax Power Station in North Yorkshire

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.