Drax Power Station: £20bn partnership to deliver giant data centre and 'protect hundreds of jobs'

A spokesman said the new partnership aligns with the Government’ s reindustrialisation ambitions.

The spokesman added: “It represents the next chapter in the site’s role meeting national electricity demand and supporting Yorkshire and the UK’s economies and it can help deliver a long-term future for the power station. “

The Brookfield-Qai AI infrastructure joint venture will provide backing for the project. Brookfield estimate that total investment in the development could potentially exceed £20bn, including an initial £2.5bn as part of the first phase.

It is planned that the first phase of the scheme will be operational from the first quarter of 2028.

The spokesman added: “ Progression of the first phase is subject to the timely progression of the necessary planning, as well as receiving the required regulatory and network approvals from Government and the system operator, in addition to securing a suitable tenant for the project.”

“The power station estate comprises 1,000 acres and 4GW of grid access, with 2.6GW of active dispatchable generation and cooling systems. The site also benefits from its proximity to the UK fibre network, making it ideal for faster and more certain development of data centres,” the statement added.

“The UK Government is clear that countries able to host and power data centres will be better placed to protect their sovereignty, strengthen economic resilience, capture the benefits of the digital economy and shape the future of AI.

“The companies welcome the Government’s new Data Centre Covenant and its pathway to accelerate time to power and planning for strategically important data centres. The companies’ initial assessment is that this project aligns with the Covenant’s criteria, supporting energy security, delivering local community benefits, meeting environmental standards, enabling reindustrialisation and strengthening the UK’s access to secure infrastructure.

“As part of their shared commitment to delivering lasting local benefits, the partners expect to establish a voluntary community benefits fund, developed in consultation with communities around the Drax Power Station site, that is separate from and additional to any planning obligations and Drax’s existing community initiatives. A community consultation on the plans will begin shortly with the formal planning process following afterward.”

Drax Group CEO, Will Gardiner, said: “We are proud to be partnering with leading AI infrastructure providers on this project which can help secure the long-term future of the site and protect hundreds of jobs, maintain a critical source of this country’s energy security, support northern growth and enable us to continue delivering for our local communities.

“This country has a unique opportunity to bring together AI leadership, energy infrastructure and industrial renewal to drive national growth. If constructed in full, this project could become one of the largest data centres in the UK, attracting billions in inward investment, supporting the North’s reindustrialisation and strengthening sovereign AI capability.

“Drax Power Station is one of the few UK sites that can provide large-scale reliable power directly to data centre customers by utilising existing and underutilised generation capacity. We welcome the Government’s recognition that strategically important data centres need faster access to power and planning. The priority now must be turning that ambition into delivery, so projects like this can move at the pace the UK needs to compete for global AI investment.”

Brookfield Head of AI infrastructure, Sikander Rashid, said: “Teaming up with Drax and Qai for this project represents a major opportunity for our AI infrastructure strategy. Our capital and deep operating capabilities will help accelerate the construction of a critical piece of sovereign AI, delivered by Radiant, our UK-headquartered compute infrastructure platform. In addition to preserving hundreds of jobs, this project will also create many direct and indirect jobs around the broader Yorkshire area.”

Radiant CEO, Mahdi Yahya, said: “We are proud to expand our UK AI compute footprint with Drax. This is a unique opportunity for the UK’s AI ecosystem to build at scale. By designing, building and operating from the UK, it will give British researchers, startups and enterprises access to frontier compute at home. Drax has powered Britain for more than fifty years. Together we can power its AI economy for the next fifty.”

Qai Chairman and Managing Director, Abdulla Al-Misnad, said: “This project is a major initiative under the Brookfield-Qai joint venture and forms part of our international AI infrastructure strategy. Drawing on the combined expertise of Qai and Brookfield in developing and managing large-scale critical infrastructure, and with Radiant and Drax delivering the project, we are helping to establish the infrastructure required to support the long-term growth of the UK’s AI ecosystem.”

Chief Secretary to the Treasury Emma Reynolds MP, said: “As we set out at the Budget, Britain must seize the opportunities of AI in a way that defends our national interest and ensures working people benefit.

“Investments like this will help pave the way to a new age of British reindustrialisation, creating good jobs in Yorkshire and delivering growth right across the country.”

Minister for Science, Innovation & Investment, Chris McDonald MP, said: “This investment from Qatar and Brookfield is a strong vote of confidence in the UK and a sign of the strength of our growing partnership with Qatar, which is driving technological advance and growth in both our countries. We are determined to make the UK the best place in the world to invest in digital infrastructure, attracting global capital to support growth, innovation and the industries of the future.”

MP for Selby and Kippax, Keir Mather MP, said: “As Selby’s MP, I’m supportive of measures to invest in our local economy and drive economic growth across Yorkshire.

“I look forward to working with the Labour Government and with Drax to make sure that these plans will help protect jobs at the power station, deliver a community benefit for local people and help realise our area's full potential”

Northern Powerhouse Partnership Chief Executive, Henri Murison, said: "Data Centres are a critical opportunity for a thriving, modern economy, and by repurposing Drax Power Station to power the next industrial revolution, this provides the opportunity in the most suitable location available to create skilled jobs, boost supply chains, whilst delivering sovereign AI here in Yorkshire.

"This partnership between Drax and Brookfield is a clear signal of the strength of our region, bringing together leadership in AI alongside vital energy infrastructure to help enable wider re-industrialisation in the North"

Renewable Energy Association Chief Executive, Trevor Hutchings, said: “Data centres are critical national infrastructure and key sovereign capability in an uncertain world. Today's announcement will help strengthen the UK's deployment of next generation AI and data centre growth, contributing to national resilience and economic security.

“Drax has an important role in the UK’s energy system, providing low-carbon, dispatchable power to support a secure and resilient electricity supply for homes and businesses. Partnerships such as this demonstrate how the UK can build on its energy expertise to attract infrastructure investment, supporting reindustrialisation and strengthening global competitiveness.”

Confederation of British Industry Director of Innovation, Naomi Weir, said: “This partnership is a major vote of confidence in Yorkshire and in the UK’s growth ambitions, with the potential for multi-billion-pound investment in critical infrastructure. Reliable energy and digital infrastructure are fundamental to modern industry. The Drax and Brookfield partnership can help provide the world-class digital capacity our economy needs as more businesses adopt AI.

“Investment of this kind can create skilled jobs, strengthen supply chains and spread economic opportunity across the country. Such investments and partnerships will be key to driving reindustrialisation that delivers tangible benefits for local economies and communities across the UK"