Drax plans £20bn AI data centre at UK's largest power station

Three phases, with power generated on site

The estate covers more than 1,000 acres, with about 4GW of grid access and 2.6GW of generating capacity. Phase one would draw on the national grid. Phase two aims to add 500MW between 2028 and 2031, this time powered directly by Drax's own generators under a long-term contract. A third phase would add capacity after 2031.

That depends on government consent. Drax's subsidy contract for biomass power runs from April 2027 to March 2031 and lets it ask to send up to 500MW to a data centre. The government and the Low Carbon Contracts Company would decide, weighing consumer value, energy security and sustainability. "Drax Power Station is one of the few UK sites that can provide large-scale reliable power directly to data centre customers," said CEO Will Gardiner.

The first phase still needs planning permission, regulatory and grid approvals, a tenant and a final investment decision from each partner. Radiant will seek anchor customers before construction. Drax expects a public consultation to begin this month, and the partners plan a voluntary fund for nearby communities.

Why it matters

Long grid queues have delayed other UK data centre projects, and operators say power and labour are now their bottleneck. Drax burns wood pellets and supplies almost 5% of UK electricity, but the government has said it will play a "much more limited role" in future, with subsidies halved from 2027 to 2031. An earlier bid to make the site an AI Growth Zone was rejected by the government.

Chief Secretary to the Treasury Emma Reynolds said such investments would help pave the way to a new age of British reindustrialisation, creating jobs in Yorkshire.