Drax Group — Strategic partnership for GW-scale data centre

(LSE:DRX) Drax Group has entered into a strategic partnership with Brookfield and Radiant to develop a gigawatt-scale AI data centre at Drax Power Station. The partnership targets an aggregate capacity of over 1GW for the data centre. Phase 1 of the project is planned for up to 100MW, with a target for commercial operations in Q1 2028. Phase 2 aims to add an additional 500MW of capacity between 2028 and 2031. Further expansion is anticipated post-2031. Brookfield estimates that the total potential investment for the project could exceed £20 billion. The initial investment for Phase 1 is estimated at £2.5 billion. The project will leverage Drax's approximately 4GW of grid access and 2.6GW of dispatchable generation. Progression of Phase 1 is subject to planning, regulatory and network approvals. Anchor tenant commitments and final investment decisions are also required before Phase 1 can proceed. The partnership is focused on developing infrastructure to support AI data centre requirements at scale. The announcement highlights the significant capital commitment and phased approach to capacity expansion. The project is positioned to utilize existing energy infrastructure at Drax Power Station. The collaboration brings together Drax, Brookfield, and Radiant as key stakeholders. The timeline for Phase 2 extends through 2031, with additional growth planned beyond that period. The announcement underscores the scale and ambition of the planned data centre development.