Key facts
- Brookfield estimated total investment in the full North Yorkshire development could potentially exceed £20 billion, including the initial £2.5 billion.
- The partners set a second phase ambition to ramp up to 500MW of capacity between 2028 and 2031, with further capacity after 2031.
- The first phase depends on timely planning progress, regulatory and network approvals from government and the system operator, and securing a suitable tenant.
- Drax said the power station estate comprises 1,000 acres and 4GW of grid access, with 2.6GW of active dispatchable generation and cooling systems.
- The partners said their initial assessment is that the project aligns with the UK government's new Data Centre Covenant criteria.
Brookfield Asset Management and the Qatar Investment Authority reached an agreement to invest £2.5 billion ($3.4 billion) in a data center project with UK power generator Drax Group Plc, according to a report on the deal.
Drax said in a statement that it had formed a strategic partnership with Brookfield and Radiant, Brookfield's UK-headquartered AI infrastructure platform, to jointly develop, deliver and operate gigawatt-scale data center capacity at Drax Power Station in North Yorkshire. Brookfield estimated that total investment in the full development could potentially exceed £20 billion, including the initial £2.5 billion as part of the first phase.
The companies plan to build capacity in phases. The first targets up to 100MW, operational from the first quarter of 2028. A second phase carries an ambition to ramp up to 500MW between 2028 and 2031, with additional capacity after 2031. Progression of the first phase is subject to timely planning progress, regulatory and network approvals from government and the system operator, and securing a suitable tenant.
Drax said the power station estate comprises 1,000 acres and 4GW of grid access, with 2.6GW of active dispatchable generation and cooling systems, and sits close to the UK fibre network. The partners said their initial assessment is that the project aligns with the criteria of the government's new Data Centre Covenant, and they expect to establish a voluntary community benefits fund separate from planning obligations. A community consultation will begin shortly, with the formal planning process to follow.
Drax Group CEO Will Gardiner said the partnership "can help secure the long-term future of the site and protect hundreds of jobs" and support the country's energy security.