Drax Group said on Tuesday, Nov. 3, that it has signed an agreement to form a strategic partnership with Brookfield and Radiant, Brookfield’s UK-headquartered AI infrastructure platform, to develop, deliver and operate an AI data center on the Drax Power Station estate in North Yorkshire. Drax’s regulatory announcement said the partnership is targeting a data center of more than 1 gigawatt. CNBC reported the plan.
The project would be built in phases, according to Drax. Phase 1 targets up to 100 megawatts, operational from the first quarter of 2028, using power imported from the grid. Phase 2 is an “ambition” to add 500 megawatts between 2028 and 2031, and Phase 3 is an ambition for more capacity after 2031. Drax said the later phases would use the station’s existing generation behind the meter under a long-term power purchase agreement, subject to consents.
Brookfield estimates that total potential investment, including semiconductor chips, could exceed £20 billion ($26.8 billion, per CNBC), with an initial £2.5 billion in Phase 1, according to the announcement. Drax said capital and operating capabilities would come through the Brookfield-Qai AI infrastructure joint venture announced in 2025.
Drax said Phase 1 is subject to planning approvals, regulatory and network approvals, an acceptable tenant, commercial agreements and a final investment decision by each party. It said a planning application is being prepared and a public consultation is expected to begin in November. Radiant is to lead design, customer engagement and commercialization, and Drax is to lead land, power integration and planning.
Drax described the estate as more than 1,000 acres with about 4 gigawatts of grid access and 2.6 gigawatts of active dispatchable generation. It said a contract-for-difference agreement signed with the UK government in November 2025 includes a mechanism to request up to 500 megawatts for a data center, subject to agreement with the government and the Low Carbon Contracts Company.
Drax CEO Will Gardiner said the project could help “protect hundreds of jobs.” Brookfield’s Sikander Rashid called it “a critical piece of sovereign AI.” Drax also said it welcomes the government’s new Data Centre Covenant and that its initial assessment is that the plan aligns with the covenant’s criteria.
CNBC reported in an article published at 3:28 a.m. ET on Tuesday that Drax shares were up 8.8% in early morning trading in London; the figure is an intraday reading and may have changed since. CNBC also said the UK has struggled with high energy costs and long waits to connect to the grid.
Elsewhere in Europe, Google said in September it would invest at least €13 billion in AI infrastructure in Finland, AI Tech Daily reported.
Sources
- Drax Group: Strategic partnership for GW-scale data centre (RNS announcement, November 3, 2026; read in full)
- Drax Group: Drax, Brookfield, Radiant and Qai announce £20bn partnership to deliver GW-scale data centre capacity at Drax Power Station (press release, November 3, 2026; read in full)
- CNBC: Brookfield plans for a $27 billion AI data center at UK power station (November 3, 2026; read in full)
- Alliance News via Morningstar: Drax and Brookfield agree GBP20 billion AI data centre investment deal (November 3, 2026; search excerpt only)
- Radiant blog: How Long Duration Capital Operates, Our Partnership with Drax (November 3, 2026; search excerpt only, not used in the body)
- AI Tech Daily: Google commits €13B to Finland AI infrastructure and nuclear power (September 9, 2026)