US revolt against data centres looms large as Drax plans move forward: Jayne Dowle
At the same time as the CEO of Drax announced a £20bn giant data centre would be a “transformational opportunity for Yorkshire”, voters in the US mid-term elections delivered a death blow to the striding ambition of the tech industry.
Writing in this newspaper, Will Gardiner, the chief executive of Drax Group, the corporate entity behind our region’s powerhouse electricity plant near Selby, argued that our power stations have been helping drive the UK’s economy for nearly a century.
This new direction would secure the Drax site for power in the widest sense and protect hundreds of jobs.
Although the UK currently leads Europe in the roll-out of data centres - with around 500 to 600 built already, according to a range of official sources, nudging just ahead of Germany - many of us have absolutely no idea what happens inside these massive sheds.
Put simply, data centres store and compute huge amounts of data. They are needed in increasing number as AI proliferates and the amount of cloud-based information produced by digital transformation grows. Inside, stand serried racks of computing hardware, servers, storage, networking equipment, along with infrastructure for power, cooling and security.
This new Drax project would likely be one of the largest investments ever into the North Yorkshire economy. It would set our region at the forefront of a rapidly burgeoning 21st century industry and put us firmly on the global map. The arguments in favour are clear - if we have the site, the expertise, the business acumen, already in place, why should we not take advantage of this opportunity to lead the field?
It is true that throughout wars, industrial change and decarbonisation, our power stations have met the needs of the country and kept the lights on for millions of homes and businesses. But, the argument continues, the industry cannot afford to rest on its laurels and resist change.
The Drax project would involve a partnership with AI-infrastructure business Radiant. Subject to planning of course, these data centres go up rapidly. The first phase could be operational from the start of 2028, it is reported.
It could be a shining example of that “growth in every postcode” Andy Burnham talks about. However, caveats are multiplying and should not be ignored.
Although shares in Drax rose 8.5 per cent in the wake of the data centre announcement last week, more recent turbulence in the global tech stocks market underscores the political and social disquiet felt by the US voters who showed their concerns at the ballot box.
In key data centre states, including Texas, home to tech trillionaire Elon Musk’s empire - Tesla and SpaceX are headquartered here - even lifelong Republican voters have voiced disquiet, ousting the previous incumbent to elect Democrat governor-elect Gina Hinojosa, who ran on a campaign to pause new data centre developments.
Many Americans express fears that they are being invaded as data centres gobble up agricultural land with no democratic recourse, transforming peaceful communities, even approaching backyards with no notification. There are also reports of constant, low-frequency industrial noise around the sites, blinding lights and ground vibrations. Stress on local power grids and water consumption, plus air pollution from on-site gas and diesel back-up generators add a triumvirate of environmental concerns to the mix.
Let’s be clear. No-one is saying that the Drax project would invade acre upon acre of local fields; the existing facility, which opened in 1974 as a coal-fired power station, converting to biomass in 2021, is already well-established in the locality.
And the UK’s planning laws are stringent. It’s reported that a community consultation on the plans will begin shortly with the formal planning process following afterward.
Partners involved propose to set up a voluntary community benefits fund, developed in consultation with communities around the Drax power station site. This would be separate from and additional to any planning obligations and Drax’s existing community initiatives.
Just as our 19th century ancestors couldn’t stop the railways criss-crossing the land, bringing forth unprecedented economic development and transforming regions such as Yorkshire, we cannot stop progress.
However, government should take a highly-responsible role as the UK tech industry gears up swiftly to become a global force. A strong statement on the direction of data centre development, an official map of existing and potential locations and governance measures would be a start.
Mr Gardiner sounds a warning note when he says that “the UK is not the only possible destination for capital projects like this one. Others are competing for the same money. What gives investors confidence is projects being delivered quickly.”
This does not mean that such projects should be delivered without due diligence, proper community consultation and detailed consideration of the net effect on key factors such as local employment and the environment.
It’s a balancing act. The UK should not stand by and let others take the lead, but no business can afford to ride roughshod over uncharted terrain, as events in the USA have so recently proved.
Only a few months ago, President Trump advocated strongly for data centres, warning communities that without them, they would end up “backwards and poor”; look where that got him.