Drax announced on November 3, 2026 that it had signed an agreement with Brookfield and Radiant to develop, deliver and operate AI data center capacity at Drax Power Station in North Yorkshire, targeting more than 1GW across three phases.
Brookfield estimates that total potential investment, including semiconductor chips, could exceed £20 billion, with an initial £2.5 billion forming part of Phase 1. Investment capital and operating capabilities are to be provided through the Brookfield-Qai AI infrastructure joint venture.
Existing Power Infrastructure Anchors the Plan
The proposal is built around infrastructure already at the power station. The estate covers more than 1,000 acres and has approximately 4GW of grid access, 2.6GW of active dispatchable generation and cooling systems. Its proximity to the UK fibre network adds another requirement for large-scale compute development alongside the land and electrical infrastructure.
The first phase targets up to 100MW of compute capacity and commercial operations from Q1 2028. It would use existing infrastructure to import power directly from the grid, with Drax managing that supply.
The power model changes in Phase 2, an ambition to add 500MW of capacity between 2028 and 2031. Existing Drax generation would provide around-the-clock power directly to the data center under a long-term power purchase agreement. This behind-the-meter arrangement would be subject to the necessary consents. Phase 3 envisages additional capacity after 2031 using the same approach.
That phased structure separates the initial grid-connected development from the later direct-power model. It also makes the station’s existing generation central to the proposed expansion rather than treating the project solely as a data center built beside a power plant.
Construction Depends on Customers and Approvals
Radiant, Brookfield’s UK-headquartered AI infrastructure platform, will lead design, customer engagement and commercialization. It will seek anchor-customer commitments before construction begins, while Drax will lead land, power integration and planning.
Phase 1 remains conditional on planning approval, regulatory and network approvals from government and the relevant agencies, an acceptable tenant, commercial agreements and a final investment decision by each party. A planning application is being prepared, with public consultation expected to begin in November 2026.
The partners expect to establish a voluntary community benefits fund developed with communities around the site. It would be separate from and additional to planning obligations and Drax’s existing community initiatives.
Radiant chief executive Mahdi Yahya said in the partners’ public announcement that the project would give “British researchers, startups and enterprises access to frontier compute at home.”
Power Contract and Financing Shape the Expansion
The later phases intersect with Drax’s existing biomass arrangements. In November 2025, Drax signed a Contract-for-Difference agreement with the UK government covering approximately 6TWh of biomass generation annually from April 2027 through March 2031.
That agreement includes a mechanism for Drax to request up to 500MW for data center use during the contract period. Such use would require agreement with the UK government and the Low Carbon Contracts Company, taking into account value for money for consumers, energy security and sustainability. Drax said the station’s roles in supporting security of supply, providing low-carbon dispatchable power and delivering critical system services would remain unchanged.
The financing vehicle predates the Yorkshire agreement. Brookfield and Qai announced their $20 billion joint venture on December 9, 2025 to invest in AI infrastructure in Qatar and selected international markets, with both partners contributing capital and operating expertise. Qai is a subsidiary of Qatar Investment Authority.
The agreement therefore connects an established power estate with a dedicated AI development platform and an existing investment vehicle. Its immediate test is execution: securing the tenant, approvals and final investment decisions needed for Phase 1, while any larger buildout must also align with Drax’s generation commitments and obtain the required consents.