# The 20 billion pound Drax data centre is, for now, a 100MW first phase ## Dek On November 3, 2026, Drax said it had signed an agreement to develop a partnership with Brookfield and Radiant for an AI data centre at its Yorkshire power station. The 20 billion pound figure is Brookfield's estimate of potential investment, chips included. Only the first phase is called a target. The later two are called ambitions, and Phase 1 still needs approvals, a tenant and investment decisions. ## Short version Drax runs Drax Power Station in Yorkshire, in the north of England. On November 3, 2026, it published through the London Stock Exchange's news service that it had "[signed an agreement to develop a strategic partnership](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=signed%20an%20agreement%20to%20develop%20a%20strategic%20partnership%20with%20Brookfield%20and%20Radiant)" with Brookfield and Radiant, Brookfield's UK-based AI infrastructure platform. The goal is a data centre of more than 1 gigawatt (GW). CNBC's headline that morning read "[Brookfield plans for a $27 billion AI data center at UK power station](https://www.cnbc.com/2026/11/03/brookfield-ai-data-center-yorkshire-drax.html#:~:text=Brookfield%20plans%20for%20a%20%2427%20billion%20AI%20data%20center%20at%20UK%20power%20station)". The announcement is narrower. Brookfield [estimates that total potential investment, including semiconductor chips, could exceed 20 billion pounds](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Brookfield%20estimates%20that%20total%20potential%20investment%2C%20including%20semiconductor%20chips%2C%20could%20exceed%20%C2%A320%20billion). Brookfield puts an initial 2.5 billion pounds of that in Phase 1, which targets [up to 100 megawatts (MW) from early 2028](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Phase%201%3A%20targeting%20up%20to%20100MW%2C%20operational%20from%20Q1%202028). Phase 1 still needs approvals, a tenant, commercial agreements and [each party's final investment decision](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=each%20party%20taking%20a%20final%20investment%20decision). The later phases are each called an "[ambition](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Phase%202%3A%20ambition%20to%20ramp%20up%20to%20an%20additional%20500MW%20of%20capacity%20between%202028%20and%202031)". My reading: what exists today is a 100MW plan with conditions, under a much larger estimate. ## Key findings - On November 3, 2026, Drax said it had "[signed an agreement to develop a strategic partnership with Brookfield and Radiant](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=signed%20an%20agreement%20to%20develop%20a%20strategic%20partnership%20with%20Brookfield%20and%20Radiant)" for an AI data centre at Drax Power Station, [targeting more than 1GW](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Strategic%20partnership%20targeting%20development%20of%20%3E1GW%20data%20centre%20at%20Drax%20Power%20Station). - Brookfield estimates that total potential investment, including semiconductor chips, [could exceed 20 billion pounds, with an initial 2.5 billion pounds as a part of Phase 1](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Brookfield%20estimates%20that%20total%20potential%20investment%2C%20including%20semiconductor%20chips%2C%20could%20exceed%20%C2%A320%20billion%2C%20with%20an%20initial%20%C2%A32.5%20billion%20as%20a%20part%20of%20Phase%201). - Phase 1 targets [up to 100MW, operational from the first quarter of 2028](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Phase%201%3A%20targeting%20up%20to%20100MW%2C%20operational%20from%20Q1%202028). Phase 2 ([500MW, 2028 to 2031](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Phase%202%3A%20ambition%20to%20ramp%20up%20to%20an%20additional%20500MW%20of%20capacity%20between%202028%20and%202031)) and [Phase 3 (after 2031)](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Phase%203%3A%20ambition%20to%20develop%20additional%20capacity%20post%202031) are each described as an "ambition". - Phase 1 is subject to planning, regulatory and network approvals, an acceptable tenant, commercial agreements and [each party taking a final investment decision](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=each%20party%20taking%20a%20final%20investment%20decision). - Drax's November 2025 contract with the UK government lets it [request up to 500MW of capacity for a data centre](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=request%20up%20to%20500MW%20of%20capacity%20being%20used%20to%20power%20a%20data%20centre) between April 2027 and March 2031, subject to agreement with the government and the Low Carbon Contracts Company. ## Article Drax Power Station [once burned coal and now generates power from biomass](https://www.drax.com/what-we-do/ai-data-centres/#:~:text=transitioning%20from%20coal%20to%20biomass). On November 3, 2026, Drax published a [regulatory announcement](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw) about a data centre on the site. I read it and the project page. Everything below comes from those two unless I say it is my reading. ### What was signed The announcement says Drax "[signed an agreement to develop a strategic partnership with Brookfield and Radiant](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=signed%20an%20agreement%20to%20develop%20a%20strategic%20partnership%20with%20Brookfield%20and%20Radiant)". Three groups have roles. Radiant leads design and the search for customers. Drax leads land, power integration and planning. Capital and operations come through a "[Brookfield-Qai AI infrastructure joint venture announced in 2025](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Brookfield%2DQai%20AI%20infrastructure%20joint%20venture%20announced%20in%202025)". The announcement describes Qai as a technology company "[headquartered in Qatar](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Qai%20is%20a%20global%20technology%20company%20headquartered%20in%20Qatar)". My reading: an agreement to develop a partnership is an early step. The announcement gives no amount that any party has committed. ### Three phases, one target and two ambitions | Phase | Size | When | The announcement's word | |---|---|---|---| | 1 | up to 100MW | from early 2028 | targeting | | 2 | 500MW | 2028 to 2031 | ambition | | 3 | not given | after 2031 | ambition | The announcement's summary calls Phase 2 [an additional 500MW](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Phase%202%3A%20ambition%20to%20ramp%20up%20to%20an%20additional%20500MW%20of%20capacity%20between%202028%20and%202031). [Its details](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Phase%202%20is%20an%20ambition%20to%20develop%20options%20for%20500MW%20of%20data%20centre%20capacity%20between%202028%20and%202031) and [the project page](https://www.drax.com/what-we-do/ai-data-centres/#:~:text=ambitions%20to%20ramp%20up%20to%20500MW%20of%20capacity%20between%202028%20and%202031) say 500MW of capacity, without "additional". Phase 1 would take [power directly from the grid](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=using%20power%20directly%20from%20the%20grid). Phases 2 and 3 would take power straight from Drax's own generators, "behind-the-meter", under a long-term supply contract and "[subject to necessary consents](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=subject%20to%20necessary%20consents)". In my words, a megawatt here is the electrical power the data centre could use. By my arithmetic, Phase 1 is at most a tenth of the goal of more than 1GW. ### Where the 20 billion pounds comes from The figure is Brookfield's estimate, as Drax reports it. The full sentence reads "[Brookfield estimates that total potential investment, including semiconductor chips, could exceed £20 billion, with an initial £2.5 billion as a part of Phase 1](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Brookfield%20estimates%20that%20total%20potential%20investment%2C%20including%20semiconductor%20chips%2C%20could%20exceed%20%C2%A320%20billion%2C%20with%20an%20initial%20%C2%A32.5%20billion%20as%20a%20part%20of%20Phase%201)". Three words carry the weight. It is an estimate, it is potential, and it includes the chips. So the 20 billion pounds counts the computers inside the buildings, not only the buildings and their power. By my arithmetic, the 2.5 billion pounds tied to Phase 1 is 12.5% of 20 billion. CNBC's article [converted the figure to 26.8 billion dollars](https://www.cnbc.com/2026/11/03/brookfield-ai-data-center-yorkshire-drax.html#:~:text=could%20exceed%20%C2%A320%20billion), and its headline rounded that to 27 billion. The article also reports the conditions on Phase 1. My reading: the headline turned a potential into a plan. Drax's own project page keeps the word potential but drops the chips. It shows "£20 billion" above the words "[Total investment potential in the project](https://www.drax.com/what-we-do/ai-data-centres/#:~:text=Total%20investment%20potential%20in%20the%20project)", and the page never mentions chips. ### The conditions on Phase 1 Phase 1 needs planning, regulatory and network approvals, "an acceptable tenant", commercial agreements and [each party taking a final investment decision](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=each%20party%20taking%20a%20final%20investment%20decision). Radiant will seek [commitments from anchor customers before construction starts](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=seeking%20to%20secure%20anchor%20customer%20commitments%20prior%20to%20initiating%20construction). [A planning application for Phase 1 is being prepared](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=A%20planning%20application%20for%20Phase%201%20of%20the%20project%20is%20being%20prepared). A [public consultation is expected to start in November 2026](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=public%20consultation%20process%20is%20expected%20to%20commence%20in%20November%202026). My reading: as of November 4, 2026, Phase 1 has no named customer and no final investment decision in any public source I found. ### The power question The announcement sets Phase 2 beside a government contract. In November 2025, Drax signed a Contract for Difference with the UK government. In my words, such a contract sets a guaranteed price. When the market price is lower, the generator is paid the difference. When it is higher, the generator pays the difference back. This one covers about [6 terawatt hours of biomass power a year from April 2027 to March 2031](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=c.6TWh%20of%20biomass%20generation%20pa%20between%20April%202027%20and%20March%202031). The announcement puts that at about 30% of the plant's baseload output from its 2.6GW of active generation. The contract lets Drax [request up to 500MW for a data centre](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=request%20up%20to%20500MW%20of%20capacity%20being%20used%20to%20power%20a%20data%20centre) during that period. The request is "subject to agreement with the UK Government and the Low Carbon Contracts Company". Their decision weighs "[value for money for consumers, energy security, and sustainability](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=value%20for%20money%20for%20consumers%2C%20energy%20security%2C%20and%20sustainability)". The announcement does not say that agreement has been given. My reading: Phase 2 leans on this contract. Both involve 500MW, and their periods overlap. ### What I could not check - **The 20 billion pound estimate.** Brookfield's calculation is not published. The announcement gives no split between buildings, power and chips. - **The 2025 joint venture.** The announcement cites it, but I did not open that release. I take nothing from it beyond the announcement's own words. Its footnote gives that release's title, which speaks of a [20 billion dollar partnership](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw#:~:text=Brookfield%20and%20Qai%20Form%20%2420%20Billion%20Strategic%20Investment%20Partnership%20for%20AI%20Infrastructure). By its title, that figure is for the joint venture as a whole, not for the Drax project. - **Jobs.** Drax speaks of protecting "hundreds of jobs" and Brookfield of "many direct and indirect jobs". The announcement gives no count. - **The customer.** No tenant is named. ## Sources - [release] [Drax Group plc, Strategic partnership for GW-scale data centre, RNS 5051B (November 3, 2026)](https://polaris.brighterir.com/public/drax_group/news/rns/story/w9opepw) - [page] [Drax, Powering AI and Data Centres (updated November 2026)](https://www.drax.com/what-we-do/ai-data-centres/) - [article] [Brookfield plans for a $27 billion AI data center at UK power station (CNBC, November 3, 2026)](https://www.cnbc.com/2026/11/03/brookfield-ai-data-center-yorkshire-drax.html)