# Brookfield’s US$27bn Drax AI campus prices phase 1 at US$33m per MW. Its public consultation starts this month

> Drax, Brookfield and Radiant plan a 1 GW-plus AI campus at Drax Power Station, with a £2.5bn first phase of 100 MW. Planning consultation is due to start in November.

Publisher: DC Market Insights  
Published: 2026-11-04  
Last updated: 2026-11-04  
Page: https://www.dcmarketinsights.com/news/brookfields-us27bn-drax-ai-campus-prices-phase-1-at-us33m-per-mw-its-public-consultation-starts-this-month

## Key takeaways

- Drax signed a strategic partnership on 3 November with Brookfield and its UK AI platform Radiant to build an AI data centre of more than 1 GW at Drax Power Station in North Yorkshire (Drax).
- Brookfield puts total potential investment, including chips, at more than £20 billion (about US$26.8 billion); phase 1, up to 100 MW from Q1 2028, accounts for £2.5 billion (AJ Bell; Resultsense).
- That prices phase 1 at £25 million, or about US$33.5 million, per MW, against an implied US$26.8 million per MW for the full campus (our calculation).
- The site brings about 4 GW of grid access and 2.6 GW of dispatchable generation, roughly four times all UK data centre capacity live in DC Market Insights data (1,025 MW).
- Drax shares rose 8.6% to 878.5p on the day (AJ Bell). Public consultation on the phase 1 planning application is expected to start this month.

Britain's biggest power station wants to become one of its biggest data centres. The deal Drax signed with Brookfield on 3 November is the first in the UK to put a sovereign-backed AI fund, a large dispatchable power plant and a 4 GW grid connection behind one campus.

It matters now because the UK has just told investors which projects it will help connect before 2030. The Budget's Data Centre Covenant on 28 October offered grid priority to "strategic" sites, and the government says the country needs 6 GW of AI capacity by 2030. Drax is the first large project to arrive after that signal with its own power already on site. The price tag, and what it says about the cost of AI capacity in Europe, is the part the market is still working out.

**>£20bn** Brookfield's estimate of total potential investment, including chips (AJ Bell)

**US$33.5m** Phase 1 investment per MW, £2.5bn for 100 MW (our calculation)

**4 GW** Grid access at Drax Power Station, plus 2.6 GW of dispatchable generation (Drax)

## How we got here: a biomass plant looking for a second business

Drax Power Station near Selby runs four biomass units of 645 MW each, 2.6 GW in total, Argus reported. Its current subsidy ends in March 2027. In November 2025 Drax signed a low-carbon dispatchable Contract for Difference (CfD) with the government's Low Carbon Contracts Company that runs from April 2027 to March 2031, at a strike price of £109.90/MWh in 2012 prices, for about 6 TWh of power a year (Drax). That is well below the 11.5 TWh of biomass power the plant produced in 2023, according to Argus. The CfD leaves room for merchant generation above the 6 TWh collar.

That gap is the opening for a data centre. A site with a large grid connection and spare generating capacity can sell power to a tenant next door instead of waiting for a new connection that, in parts of Britain, can take up to 10 years, as BBC File on 4 reporting cited by Resultsense noted. Drax has described its site as one of the few in the country that can do this at scale.

> Drax Power Station is one of the few UK sites that can provide large-scale reliable power directly to data centre customers

***Will Gardiner** , Chief Executive, Drax Group — [Drax, November 2026](https://www.drax.com/what-we-do/ai-data-centres/)*

Drax is not alone in the area. Microsoft has plans for a data centre campus on part of the former Eggborough coal power station, also in the Selby district, DCD reported. North Yorkshire's old power sites are turning into a cluster because they have what most of the UK queue lacks: high-voltage connections that already exist.

## What was signed on 3 November

Drax agreed to develop a strategic partnership with Brookfield Asset Management and Radiant, Brookfield's UK-headquartered AI infrastructure platform. The partners plan to jointly develop, deliver and operate an AI data centre on the Drax Power Station estate. Drax brings the land (about 1,000 acres, per Construction Briefing), the power and the grid connection. Capital and operating capability come through the Brookfield-Qai joint venture formed in December 2025. Qai is the AI subsidiary of the Qatar Investment Authority.

| Item | Term | Source |
| --- | --- | --- |
| Parties | Drax Group; Brookfield; Radiant (Brookfield's UK AI platform); funding via Brookfield-Qai JV | Drax; AJ Bell |
| Total potential investment | More than £20bn (about US$26.8bn), including semiconductor equipment | Brookfield estimate via AJ Bell, Resultsense |
| Phase 1 | Up to 100 MW; £2.5bn; commercial operation targeted Q1 2028 | Drax; AJ Bell |
| Phase 2 | Ambition to ramp up to 500 MW more between 2028 and 2031 | Drax; AJ Bell |
| Phase 3 | Additional capacity after 2031; campus above 1 GW | Drax |
| Site power | About 4 GW grid access; 2.6 GW active dispatchable generation and cooling systems | Drax |
| Conditions | Planning, regulatory and network approvals; an acceptable tenant; commercial agreements; a final investment decision by each party | Drax |
| Next step | Phase 1 planning application in preparation; public consultation expected to start in November 2026 | AJ Bell |
| Community | Voluntary community benefits fund, separate from planning obligations | Drax |

Sources: [Drax, Powering AI and Data Centres](https://www.drax.com/what-we-do/ai-data-centres/); [AJ Bell, 3 Nov 2026](https://www.ajbell.co.uk/news/articles/drax-and-brookfield-agree-gbp20-billion-ai-data-centre-investment-deal); [Resultsense, 3 Nov 2026](https://www.resultsense.com/news/2026-11-03-drax-brookfield-radiant-yorkshire-data-centre/); [Construction Briefing, 3 Nov 2026](https://www.constructionbriefing.com/news/20bn-partnership-to-deliver-a-1gw-uk-data-centre-announced/8135483.article). Nothing in the agreement is a final investment decision.

The market liked it. Drax shares rose 8.6% to 878.5p on Tuesday, the best performer on the FTSE 250, with an intraday high of 886p, AJ Bell reported. Resultsense, citing Reuters, said JPMorgan analysts saw the deal raising expectations that the plant keeps running after its subsidy scheme ends in March 2031.

> If constructed in full, this project could become one of the largest data centres in the UK

***Will Gardiner** , Chief Executive, Drax Group — [AJ Bell, 3 Nov 2026](https://www.ajbell.co.uk/news/articles/drax-and-brookfield-agree-gbp20-billion-ai-data-centre-investment-deal)*

## The economics: what US$33.5 million per MW buys

The headline £20 billion is an estimate of potential investment, not a committed price, and it includes chips. Read per MW, it still says a lot. Phase 1 at £2.5 billion for 100 MW is £25 million per MW. The full campus, at more than £20 billion for more than 1 GW, is at most £20 million per MW, because the MW figure is a floor. At the exchange rate implied by Brookfield's own conversion (£20 billion = US$26.8 billion, or US$1.34 per pound), those are US$33.5 million and up to US$26.8 million per MW (our calculation).

Phase 1 carries 12.5% of the investment for 10% of the capacity. That is normal for a first phase, which pays for substations, cooling plant and shared site works that later phases reuse. The rest of the gap is the IT itself.

*Figure 1. Investment per MW: Drax phases against Europe's average build cost and the DC Market Insights AI data centre model. Source: [AJ Bell](https://www.ajbell.co.uk/news/articles/drax-and-brookfield-agree-gbp20-billion-ai-data-centre-investment-deal); [Turner & Townsend via DC Market Insights](https://www.dcmarketinsights.com/news/europe-now-costs-us12-76-a-watt-to-build-data-centres-29-above-the-gulf-eu-rules-close-14-december); DC Market Insights AI data centre model; our calculation.*

Three benchmarks frame the number. First, building the shell and plant: Turner & Townsend's 2026-27 index puts the average cost to build a data centre in Europe at US$12.76 per watt, or US$12.76 million per MW, as we reported on [29 October](https://www.dcmarketinsights.com/news/europe-now-costs-us12-76-a-watt-to-build-data-centres-29-above-the-gulf-eu-rules-close-14-december). Drax phase 1 is about 2.6 times that, which only makes sense if GPUs and servers are inside the £2.5 billion. Second, a recent European AI deal with a disclosed split: VOLT's Rotterdam AI gigafactory, with Nebius lined up for up to 200 MW, needs about €7 billion, of which €2.5 billion goes to buildings and infrastructure and €4.5 billion to chips and equipment, Techzine reported on 12 October. That is €35 million per MW all in, with 64% for equipment. Third, the DC Market Insights AI data centre model, which puts the full cost of a large AI facility including IT at about US$44.6 million per MW. Drax phase 1 sits at about 75% of that model (our calculation).

| Project | Capacity | Investment | Per MW | What is included |
| --- | --- | --- | --- | --- |
| Drax / Brookfield phase 1 (UK) | up to 100 MW | £2.5bn | £25m (~US$33.5m) | Phase 1, Brookfield estimate |
| Drax / Brookfield full campus (UK) | >1 GW | >£20bn (~US$26.8bn) | ≤£20m (≤US$26.8m) | Incl. semiconductor equipment |
| VOLT Rotterdam, Nebius anchor (NL) | up to 200 MW | ~€7bn | ~€35m | €2.5bn buildings, €4.5bn chips and equipment |
| Europe average build cost (index) | per MW | – | US$12.76m | Construction only, no IT |
| DC Market Insights AI data centre model | per MW | – | ~US$44.6m | Facility plus IT hardware |

Our calculation from [AJ Bell](https://www.ajbell.co.uk/news/articles/drax-and-brookfield-agree-gbp20-billion-ai-data-centre-investment-deal), [Techzine](https://www.techzine.eu/news/infrastructure/144896/nebius-is-the-first-customer-of-a-rotterdam-based-ai-gigafactory/) and our [29 October analysis](https://www.dcmarketinsights.com/news/europe-now-costs-us12-76-a-watt-to-build-data-centres-29-above-the-gulf-eu-rules-close-14-december). Pound-dollar conversions differ slightly between outlets: Resultsense gives £20bn = US$26.8bn (1.34), Construction Briefing £2.5bn = US$3.4bn (1.36); we use 1.34. Drax and VOLT figures are estimates by the sponsors, not contracted prices, and their scopes may differ; we do not add them together.

## Who gains, and how much

**Drax.**  The deal gives a biomass generator a second customer for its output and its grid connection. A 100 MW IT load running at 90% average use draws about 0.79 TWh a year, 13% of the 6 TWh CfD collar. The full 600 MW of phases 1 and 2 would draw about 4.7 TWh, and a 1 GW campus about 7.9 TWh, more than the CfD volume on its own (our calculation, 90% load assumed). Under the CfD terms Argus reported in 2025, Drax targets £100-200 million a year of average adjusted EBITDA from the plant over April 2027 to March 2031 and shares gains above £160 million a year with the government. A long-term data centre contract would sit beside that and outlast it.

**Brookfield and Qatar.**  Brookfield and Qai formed their US$20 billion joint venture in December 2025, with Qatar as the main focus and "select international markets" in scope (QIA). The full Drax estimate, about US$26.8 billion, is larger than the whole joint venture, so the campus would need more capital or project debt as it grows. Brookfield's wider AI infrastructure programme aims to mobilise up to US$100 billion.

> We are pleased to announce our inaugural AI infrastructure investment in the Middle East alongside Qai.

***Bruce Flatt** , Chief Executive, Brookfield — [QIA, 9 Dec 2025](https://www.qia.qa/en/Newsroom/Pages/Brookfield-and-Qai-Form-$20-Billion-Strategic-Investment-Partnership-for-AI-Infrastructure.aspx)*

**The UK target.**  Phases 1 and 2, 600 MW by 2031, would equal 10% of the 6 GW the government says the UK needs by 2030. A campus above 1 GW would roughly match all 1,025 MW of UK data centre capacity that DC Market Insights currently tracks as live, across 191 facilities. Our tracker also shows 332 MW under construction and 7,265 MW planned in the UK where MW is disclosed; the Drax campus is not yet in that count.

*Figure 2. Drax campus phases against the power on site and all UK data centre capacity live in our tracker (MW). Source: [Drax](https://www.drax.com/what-we-do/ai-data-centres/); [DC Market Insights data, 4 Nov 2026](https://www.dcmarketinsights.com/data/power-policy/united-kingdom).*

**Who carries the risk.**  No tenant has been named. Phase 1 needs planning consent, network sign-off and investment decisions by each party. The biomass fuel behind the power is also contested: campaign groups have opposed using Drax's wood-burning plant to power data centres, and the plant's CfD requires sustainably sourced biomass with enhanced supply chain auditing (Drax). A hyperscale tenant with 24/7 carbon targets will look closely at both.

## The wider pattern: power first, capital follows

Across Europe, the deals that move are the ones with power attached. VOLT's Rotterdam project needs financing before construction and expects first capacity in late 2029 or early 2030 (Techzine). In the UK, TPG was reported on 28 October to be in talks to buy Ark Data Centres at about £3.8 billion, as we noted in our [covenant analysis](https://www.dcmarketinsights.com/news/britains-data-centre-covenant-offers-grid-priority-to-reach-6-gw-by-2030-planning-rules-close-8-january). Ofgem has said data centres account for at least 73 GW of grid connection requests in Great Britain. Against that queue, a site that already has 4 GW of connection and 2.6 GW of generation is scarce, and the price per MW reflects a ready-to-use asset, not just a building.

The pattern is visible elsewhere too: Denmark has put most data centres last in its grid queue, and the Netherlands has about 15 GW of data centre requests waiting. Former power stations, from Eggborough to Drax, are one of the few ways around those queues.

### What it means for operators, investors and vendors

Our view, based on the figures above:

- **Investors: separate shell from silicon.**  At US$33.5 million per MW, about 60-65% of Drax phase 1 is likely IT if it follows the VOLT split; value the power and land at nearer the US$12.76 million per MW build benchmark.
- **Price grid access as the asset.**  4 GW of connection is about four times all UK data centre capacity we track as live; brownfield power sites deserve a premium over greenfield land with no date for power.
- **Operators: line up the tenant before the FID.**  Phase 1 is only 100 MW, but it needs a named tenant; the first 2028 slot will go to whoever signs first.
- **Vendors: plan for 600 MW by 2031.**  Phases 1 and 2 imply about 500 MW of cooling, switchgear and transformer orders over 2027-2031 at one site.
- **Utilities and generators: copy the model.**  A 1 GW campus at 90% load uses about 7.9 TWh a year, more than Drax's 6 TWh CfD volume; spare dispatchable output can find a buyer next door.
- **Everyone: watch the fuel.**  Biomass sourcing rules and campaign pressure are a tenant risk that a gas or grid site does not carry.

For the size of the market Drax is targeting, see our [UK AI Data Center Market](https://www.dcmarketinsights.com/report/uk-ai-data-center-market) report and the wider [AI Data Center Market](https://www.dcmarketinsights.com/report/ai-data-center-market) report. For on-site and co-located power, see the [Data Center Generator Market](https://www.dcmarketinsights.com/report/data-center-generator-market) report. UK grid rules, incentives and power prices are tracked on our [United Kingdom power and policy page](https://www.dcmarketinsights.com/data/power-policy/united-kingdom), part of the [Data Center Power & Policy Tracker](https://www.dcmarketinsights.com/data/power-policy).

## What to watch next

- **November 2026:**  public consultation on the phase 1 planning application is expected to start.
- **8 January 2027:**  consultation on the UK's draft National Policy Statement for Data Centres closes, which sets how large projects are judged.
- **1 April 2027:**  Drax's low-carbon dispatchable CfD starts, at £109.90/MWh (2012 prices) for about 6 TWh a year.
- **Before Q1 2028:**  a tenant, network approvals and final investment decisions are needed for phase 1.
- **Q1 2028:**  target start of commercial operation for phase 1, up to 100 MW.
- **2028-2031:**  phase 2 ambition of a further 500 MW; the CfD ends in March 2031.

## Frequently asked questions

### How big is the Drax data centre deal?

Brookfield estimates total potential investment at more than £20 billion (about US$26.8 billion), including chips, for a campus of more than 1 GW at Drax Power Station. Phase 1 is up to 100 MW for £2.5 billion, targeted for Q1 2028.

### Who is behind the Drax AI data centre?

Drax Group, Brookfield and Radiant, Brookfield's UK AI infrastructure platform, signed a strategic partnership on 3 November 2026. Capital comes through the US$20 billion Brookfield-Qai joint venture; Qai is a subsidiary of the Qatar Investment Authority.

### What does the Drax deal cost per MW?

Phase 1 works out at £25 million, or about US$33.5 million, per MW. The full campus is at most £20 million (US$26.8 million) per MW. Both include IT equipment, so they are not comparable with Europe's US$12.76 million per MW build cost (our calculation).

### Where will the Drax data centre get its power?

From Drax Power Station itself, which has about 4 GW of grid access and 2.6 GW of dispatchable biomass generation. From April 2027 the plant sells about 6 TWh a year under a government CfD at £109.90/MWh in 2012 prices.

## Sources

1. Drax Group, "Powering AI and Data Centres", November 2026. [Link](https://www.drax.com/what-we-do/ai-data-centres/)
2. AJ Bell, "Drax and Brookfield agree GBP20 billion AI data centre investment deal", 3 Nov 2026. [Link](https://www.ajbell.co.uk/news/articles/drax-and-brookfield-agree-gbp20-billion-ai-data-centre-investment-deal)
3. Resultsense, "Drax and Brookfield plan £20bn-plus UK AI data centre", 3 Nov 2026. [Link](https://www.resultsense.com/news/2026-11-03-drax-brookfield-radiant-yorkshire-data-centre/)
4. Construction Briefing, "£20bn partnership to deliver a 1GW UK data centre announced", 3 Nov 2026. [Link](https://www.constructionbriefing.com/news/20bn-partnership-to-deliver-a-1gw-uk-data-centre-announced/8135483.article)
5. Qatar Investment Authority, "Brookfield and Qai Form $20 Billion Strategic Investment Partnership for AI Infrastructure", 9 Dec 2025. [Link](https://www.qia.qa/en/Newsroom/Pages/Brookfield-and-Qai-Form-$20-Billion-Strategic-Investment-Partnership-for-AI-Infrastructure.aspx)
6. Drax Group, "Low-carbon dispatchable CfD contract agreement", 5 Nov 2025. [Link](https://www.drax.com/?p=19856)
7. Drax Group, "Government support for low-carbon dispatchable generation from 2027". [Link](https://www.drax.com/?p=18961)
8. Argus Media, "Utility Drax outlook strong to 2031 on deal with UK gov", Feb 2025. [Link](https://www.argusmedia.com/en/news-and-insights/latest-market-news/2656379-utility-drax-outlook-strong-to-2031-on-deal-with-uk-gov)
9. Techzine, "Nebius is the first customer of a Rotterdam-based AI gigafactory", 12 Oct 2026. [Link](https://www.techzine.eu/news/infrastructure/144896/nebius-is-the-first-customer-of-a-rotterdam-based-ai-gigafactory/)
10. DCD, "Microsoft to build data center campus on former power station site in North Yorkshire, UK". [Link](https://datacenterdynamics.com/en/news/microsoft-to-build-data-center-campus-on-former-power-station-site-in-north-yorkshire-uk)
11. DC Market Insights, "Britain's data centre covenant offers grid priority to reach 6 GW by 2030", 3 Nov 2026. [Link](https://www.dcmarketinsights.com/news/britains-data-centre-covenant-offers-grid-priority-to-reach-6-gw-by-2030-planning-rules-close-8-january)
12. DC Market Insights, "Europe now costs US$12.76 a watt to build data centres", 29 Oct 2026. [Link](https://www.dcmarketinsights.com/news/europe-now-costs-us12-76-a-watt-to-build-data-centres-29-above-the-gulf-eu-rules-close-14-december)
13. DC Market Insights, United Kingdom data center power and policy data, accessed 4 Nov 2026. [Link](https://www.dcmarketinsights.com/data/power-policy/united-kingdom)
14. DC Market Insights, UK AI Data Center Market report. [Link](https://www.dcmarketinsights.com/report/uk-ai-data-center-market)