Drax-Brookfield Partnership Targets Data Center Exceeding 1 Gigawatt, With Potential Investment of More Than £20 Billion
Key Facts
Drax, Brookfield and Brookfield’s Radiant platform announced a partnership on November 3, 2026, to develop and operate an artificial intelligence data center with targeted total capacity exceeding 1 gigawatt at the Drax Power Station site in North Yorkshire. Brookfield estimated potential total investment at more than £20 billion, including semiconductor chips, while investment in the first phase could reach £2.5 billion. The announcement represents a multi-phase development plan, not an investment already made or capacity already available. According to Drax, the partnership combines Radiant’s expertise in AI infrastructure with Drax’s available land and power. Drax’s chief executive said the project “could help secure the long-term future of the site and protect hundreds of jobs” if it proceeds.
The first phase targets capacity of up to 100 megawatts, with commercial operation to begin in the first quarter of 2028, and the facility would receive electricity directly from the grid at this stage. The partnership then plans to add capacity of up to 500 megawatts in the second phase between 2028 and 2031. The third phase targets further capacity development after 2031, with no size specified in the announcement. Capacity would therefore scale from the first phase to a subsequent expansion, ultimately reaching the overall target of more than 1 gigawatt. The first-phase operating date remains a stated target within the project development plan.
The plan is based on a site covering more than 1,000 acres, with grid connection capacity of about 4 gigawatts, alongside 2.6 gigawatts of active dispatchable generation and cooling systems. Drax said Radiant would lead the project’s design, customer engagement and commercialization. Drax would handle land, power integration and planning, according to the division of responsibilities announced by the company. These resources feature among the site’s attributes underpinning the partnership’s data center development. Drax’s contract for difference with the government, agreed in November 2025, also allows the company to request use of up to 500 megawatts to supply a data center between April 2027 and March 2031, subject to approval by the government and the Low Carbon Contracts Company.
The project comes as the British government has estimated that the country will need 6 gigawatts of AI data center capacity by 2030 to ensure local access to models and protect national interests. The government’s Data Centre Charter sets conditions for strategic projects, including reducing their impact on electricity bills, providing benefits to local communities, and meeting energy and water efficiency standards. In return, the government may accelerate grid connection and planning processes for eligible projects. The framework reflects the importance of balancing new computing capacity with energy, water and surrounding community requirements. Drax has also linked the project to the future of the power station site and its jobs, according to statements by its chief executive.
Progression to the first phase is conditional on obtaining planning, regulatory and grid approvals, as well as securing a suitable tenant, concluding commercial agreements and the parties making final investment decisions. Drax said the planning application for the first phase was being prepared, with public consultations expected in November 2026. This means the targeted start of operation in early 2028 is preceded by a process of approvals, contracts and investment decisions. The company did not identify the data center’s tenant or set a final date for investment decisions in its announcement. The stated total capacity remains a development target, while next steps depend on meeting these conditions.
In market context, Brookfield Corporation, listed under the ticker BN, closed at $41.46 on November 2, 2026, according to EL7 data. That was the session before the partnership announcement, and the figure does not include the opening price or the day’s high and low. On British monetary policy, the current Bank Rate is 3.75%, with the next decision due on November 5, 2026. The Bank of England is scheduled to publish its Monetary Policy Summary and Monetary Policy Committee meeting minutes, along with its Monetary Policy Report, that day. The bank has scheduled publication of these materials for 12 p.m.