Drax’s owner plans to build a datacentre of more than 1 gigawatt at its North Yorkshire power station site with Brookfield and Radiant, under a £20bn deal reported by the Guardian. It could start operating by early 2028.
The Drax datacentre proposal
The proposal would put a large artificial intelligence datacentre on the site of the Drax power station in North Yorkshire. The Guardian reports that the plant’s owner, a company listed in the FTSE 250, has agreed a £20bn deal with the infrastructure investor Brookfield and the AI infrastructure platform Radiant. The datacentre would eventually have a capacity of more than 1 gigawatt, which would make it the largest in the UK, and could begin operating by early 2028. The company has described the project as the site’s “next chapter”.
An AI datacentre is a building full of specialised computer chips that train and run AI models. These chips use a great deal of electricity and give off a lot of heat, so a facility’s size is usually measured by how much power it can draw rather than by its floor area. A capacity of 1 gigawatt or more is comparable to the output of a large power station. That explains why developers want sites that already have big power supplies and strong connections to the national grid.
Origins of the site and the deal
Drax was built as a coal-fired power station and grew into one of the largest generating sites in Britain. Over time its owner converted several generating units from coal to biomass, which mainly means burning compressed wood pellets. The company presented biomass as a lower-carbon fuel. Critics have long questioned that view. They point out that burning wood releases carbon dioxide at the chimney, and that the climate benefit depends on how the forests supplying the wood are managed and how long they take to regrow. This is why the Guardian describes Drax as Britain’s most polluting power plant, even though it no longer burns coal.
The datacentre deal comes as companies around the world look for places where large amounts of electricity are available quickly. In many countries, including the UK, the wait to connect a new large user to the grid has become a serious bottleneck for AI infrastructure. Former industrial and power generation sites appeal to developers because they often already have high-voltage grid connections, land, and access to water for cooling. Reporting so far does not explain in detail why the partners chose Drax beyond these general advantages.
How the project would work
Based on what has been reported, the arrangement brings together three kinds of participant. The power station owner supplies the site and its link to electricity generation and grid infrastructure. Brookfield supplies large-scale infrastructure capital. Radiant supplies expertise in building and running AI computing facilities. Public reporting has not said how ownership, revenue and risk would be divided between them.
The datacentre would probably be built in stages. The phrase “eventual capacity” suggests that the 1 gigawatt figure is a long-term target and that the facility would not draw that much power from day one. Large datacentres are usually built in phases, with new halls and chips added as customers sign up. The early 2028 date refers to when operations could begin, which would most likely mean only part of the full capacity.
It is not known how much of the datacentre’s electricity would come directly from Drax’s biomass units and how much from the wider grid. It is also unclear whether the arrangement depends on the power station continuing to run in its current form, and what planning and regulatory approvals are still needed.
Common misunderstandings
The £20bn is not a payment made today. Figures like this usually describe the total expected investment over the life of a multi-phase project. They do not describe money changing hands when the deal is signed. Public reporting has not said how and when the sum would be spent.
“Could power” is not a confirmed supply arrangement. The headline wording means the plant could supply the datacentre. It does not mean the facility will run only on Drax’s output. Many datacentres buy electricity through the grid and through contracts with several generators.
Capacity is not the same as consumption. A capacity of 1 gigawatt describes the maximum power the site is designed to handle. How much energy it actually uses depends on how fully it is built out and used.
Biomass is not automatically carbon neutral. Official accounting rules have often treated biomass emissions differently from fossil fuel emissions. Scientists and campaigners dispute whether this reflects the real effect on the climate. Readers should not assume that a datacentre powered by biomass has no emissions.
The project is not yet under construction. On current reporting it is an agreed plan with a target date. Nothing has been reported about construction having started.
Where to look next
To follow the story, readers can look at the Guardian’s business coverage, which first reported the deal, and at stock exchange announcements from the power station’s owner, which listed companies have to publish for significant transactions. Planning applications to the relevant local authority in North Yorkshire would show the physical scale and timetable of the project in more detail once they are filed.
On the energy side, the national electricity system operator and the energy regulator publish material on grid connections and demand forecasts, including the expected growth of datacentres. Government departments responsible for energy and for science and technology publish policy documents on AI infrastructure and on sites designated for AI growth. For the biomass debate, independent climate advisory bodies and academic research on bioenergy accounting set out the competing arguments.
Frequently asked questions
What is planned at the Drax power station site?
The owner of the Drax power station in North Yorkshire has agreed a deal with the infrastructure investor Brookfield and the AI infrastructure platform Radiant to build a large AI datacentre on the site. According to the Guardian, the facility would eventually have a capacity of more than 1 gigawatt and could begin operating by early 2028.
How much is the Drax datacentre deal worth?
The Guardian reports that the deal is worth £20bn. A figure of this kind usually describes the total expected investment over the life of a project built in phases, rather than a single payment made when the agreement is signed. Public reporting has not said how the sum would be split between the partners or when it would be spent.
Why is Drax called the UK’s most polluting power plant?
Drax used to burn coal and now mainly burns wood pellets as biomass. Burning wood releases carbon dioxide at the chimney, and the plant is very large, so it is described as a major emitter. Whether biomass should count as low-carbon is disputed, because the answer depends on forest management and how long it takes for the carbon to be absorbed again.
Why are AI datacentres built near power stations?
AI datacentres need very large and reliable electricity supplies. Connecting a new large user to the grid can take years. Power station sites often already have high-voltage grid connections, industrial land and access to water for cooling. These features can make it quicker and easier to build a big computing facility there than on a new site.
Will the Drax datacentre run entirely on biomass power?
This is not known. Reporting says the plant could power the datacentre, but no details have been published on how much electricity would come directly from Drax and how much from the wider national grid. Large datacentres often buy power from several sources, so readers should not assume that all of it would come from biomass.
Sources and further reading
- The Guardian: business and technology reporting on the deal at the Drax site
- Stock exchange regulatory announcements: disclosures from the power station’s listed owner
- UK energy regulator and electricity system operator: material on grid connections and demand forecasts
- Independent climate advisory bodies and academic research: analysis of how biomass emissions are counted
Surfaced from the rss:guardian_tech signal “power station datacentre deal”. AI-assisted draft, editorially reviewed.
