The proposed facility, planned for Drax Power Station in northern England, is expected to exceed one gigawatt in capacity and could become one of the largest data centres in the United Kingdom if developed in full. Drax shares gained about 9% after the announcement, reflecting investor interest in the potential value of the project.

Under the partnership, Drax will provide the site, power-generation capabilities and access to its existing four-gigawatt grid connection. Radiant will contribute expertise in AI infrastructure, while Brookfield will provide capital through a joint venture involving Qatar’s Qai.

Brookfield estimates that total investment could exceed £20 billion, including an initial £2.5 billion for the first phase. That phase is expected to draw power directly from the grid and is targeting commercial operations from early 2028. The timetable remains subject to planning, regulatory and network approvals, as well as final investment decisions.

The project reflects the growing demand for computing capacity as technology companies and investors expand infrastructure to support artificial intelligence. Data centres require substantial and reliable electricity supplies, making access to power and grid capacity an increasingly important factor in site selection.

For Drax, the agreement offers a potential route to diversify the use of its land and energy infrastructure beyond its existing power-generation business. It could also strengthen expectations that the site will remain commercially relevant after the current subsidy scheme for the power station is due to end in March 2031.

However, the scale of the proposed investment should not be confused with committed spending. The project’s delivery will depend on approvals, financing, construction and the ability to secure the necessary infrastructure.

The partners also said they intend to establish a voluntary community benefits fund in consultation with local communities.

The announcement places Drax within the wider competition to build the infrastructure underpinning AI services. Its eventual economic impact will depend on whether the planned capacity moves from proposal to construction and commercial operation.