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Will £20bn Drax AI hub deliver 1GW capacity and direct power by 2031?

A £20bn deal aims to build a major AI facility at the Drax site, with operations potentially starting in early 2028.

Depth
£20bnDrax partners with Brookfield and Radiant for a data centre project valued at up to £20bn · reported
1 outlet · newest source 11h ago

Key points

  • Drax partners with Brookfield and Radiant for a data centre project valued at up to £20bn.
  • The facility targets more than 1GW capacity, with an initial phase of 100MW by early 2028.
  • Direct power supply from the plant is hoped for before 2031, pending regulatory approval.
Will £20bn Drax AI hub deliver 1GW capacity and direct power by 2031?

The Guardian AI reported that Drax, the owner of the UK’s largest power plant, has struck a deal with Brookfield and Radiant to develop a major AI data centre on the North Yorkshire site. The partnership aims to build infrastructure with an eventual capacity exceeding one gigawatt, marking a significant shift for the facility.Drax is turning its power plant site into a huge computer centre for AI, backed by a £20bn deal.Drax, Brookfield and Radiant have struck a deal to develop AI infrastructure with >1GW capacity at the North Yorkshire site.

Evidence: reportedUK’s most polluting power plant could power country’s largest AI datacentre

aifleet-guardian

The claim

The project is valued at up to £20bn ($26.8bn) in investment. According to the report, the initial phase could become operational in the first quarter of 2028, offering up to 100MW of compute capacity. Drax will provide land and existing grid connections for this start.

Evidence: reportedUK’s most polluting power plant could power country’s largest AI datacentre

aifleet-guardian

The response

Drax chief executive Will Gardiner stated the project would secure the site’s long-term future and protect hundreds of jobs. He added that it supports northern reindustrialisation and strengthens sovereign AI capability. Equity analysts welcomed the news, and Drax’s market value rose nearly 9% to almost £3bn on the London Stock Exchange.

Evidence: reportedUK’s most polluting power plant could power country’s largest AI datacentre

aifleet-guardian

The bottom line for teams

The company hopes to begin powering the data centre directly by the early 2030s. This requires clearing regulatory approvals before 2031 to secure future revenues. Currently, the data centre will rely on national grid access through existing site connections during the initial phase.

Evidence: reportedUK’s most polluting power plant could power country’s largest AI datacentre

aifleet-guardian

What the paper shows

The Guardian AI report outlines a corporate strategy rather than a technical evaluation. It details the financial scale (£20bn), the partners (Brookfield, Radiant), and the timeline (2028 start). The stated limitation is the reliance on grid power initially, with direct plant power contingent on future regulatory approvals. The report does not assess the AI models or hardware efficiency, only the infrastructure capacity.

Evidence: reportedUK’s most polluting power plant could power country’s largest AI datacentre

aifleet-guardian

Why it matters

  • Model evaluators must track data centre locations to understand regional compute availability and potential latency for UK-based sovereign AI workloads.
  • The shift from biomass power generation to direct data centre power highlights changing energy constraints for large-scale AI training clusters in the UK.
  • Regulatory hurdles for direct power supply before 2031 introduce uncertainty for long-term energy cost modelling of AI infrastructure projects.
  • The 100MW initial phase provides a concrete baseline for near-term capacity planning, distinct from the eventual 1GW target.

Topics: infrastructure, energy, UK, data centres, Drax

Updated

Then / now / next

Then

Drax is the single largest emitter of carbon dioxide in the UK, producing almost 5% of the country’s electricity.

Now

Drax has signed a £20bn deal to build a major AI data centre on the site.

Next

Watch for regulatory approvals allowing direct power supply from the plant before 2031.

Story timeline

  1. Then Drax is the single largest emitter of carbon dioxide in the UK, producing almost 5% of the country’s electricity.
  2. 03 Nov 2026 UK’s most polluting power plant could power country’s largest AI datacentre
  3. Now Drax has signed a £20bn deal to build a major AI data centre on the site.
  4. Next Watch for regulatory approvals allowing direct power supply from the plant before 2031.

The strongest doubt

Counterpoint from the sources

The UK government plans to limit Drax’s role in power generation, citing concerns over sustainability claims and reducing subsidies from 2027 to 2031.

For readers

Investors

  • Drax's market value rose nearly 9% following the announcement.
  • The project attracts up to £20bn in investment.

Policy

  • The government will limit Drax's subsidies from 2027 to 2031.
  • Regulatory approvals are needed for direct power supply before 2031.

Researchers

  • The site aims for 1GW capacity, impacting regional energy grids.
  • Initial phase offers 100MW compute capacity by early 2028.

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Questions readers ask

When will the Drax AI data centre begin operations?

The initial phase could begin operations by the first quarter of 2028.

Who are the partners in the Drax data centre deal?

Drax has partnered with infrastructure investor Brookfield and AI infrastructure platform Radiant.

What is the total capacity of the planned data centre?

The project aims for an eventual capacity of more than 1 gigawatt.

Connected stories

Reading receipt

  • Drax partners with Brookfield and Radiant for a data centre project valued at up to £20bn.
  • The facility targets more than 1GW capacity, with an initial phase of 100MW by early 2028.
  • Direct power supply from the plant is hoped for before 2031, pending regulatory approval.

Still open: Will Drax secure regulatory approval to power the data centre directly before 2031?

Still open: How will the reduction in subsidies from 2027 impact the project's financial viability?

Time spent: 0:00 · Depth: Full

Sources

  1. The Guardian AI

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