Brookfield plans an AI data center at the UK's Drax power station that could top £20 billion
Drax, which runs a power station in North Yorkshire, would host the project with Brookfield and its Radiant platform, though approvals, a tenant and final investment decisions are still pending.
By Marcus Rodriguez ·
Why it matters: It's a big AI bet in Europe, where grid access and energy costs have slowed data centers, but it isn't final yet.
For information only, not investment advice. Prices delayed.
Tickers: BAM
Brookfield ($BAM) wants to build an AI data center on the grounds of a British power station. Drax Group, the London-listed energy company that runs the Drax Power Station in North Yorkshire, said Tuesday it signed an agreement with the asset manager and its neocloud platform Radiant to jointly develop the site, CNBC reported. A neocloud rents out AI computing power, much like a cloud provider built only for AI.
The plan starts small and grows. It targets up to 100 megawatts from the first quarter of 2028, another 500 megawatts between 2028 and 2031, and eventually more than 1 gigawatt, with no date set for that last step.
The number everyone will quote
Brookfield estimates total investment could exceed £20 billion ($26.8 billion), but that figure includes the chips. The first phase is £2.5 billion, and it will run on grid power, targeting commercial customers from early 2028.
None of it is locked in yet. The first phase still needs planning, regulatory and network approvals, plus a tenant, and Drax said final investment decisions are yet to be made.
Why Britain
Europe has lagged the US in breaking ground on huge AI facilities, and the UK has struggled with high energy costs and long waits to connect to the grid. The first phase will still draw power from the grid and needs network approvals.
This is a unique opportunity for the UK's AI ecosystem to build at scale,
Sources
Tags: ai · energy · europe