Brookfield is backing a GW-scale artificial intelligence data centre at Drax Power Station in North Yorkshire, with the partners estimating total investment in the full development could exceed £20 billion ($26.8 billion).
In a statement on Tuesday, Drax said it had agreed with Brookfield and its UK-based AI infrastructure platform Radiant to jointly develop the facility, with Qatar's Qai providing backing through a joint venture with Brookfield that could include an initial £2.5 billion ($3.4 billion) investment.
That funding would cover the first phase of up to 100MW of capacity, with operations targeted for Q1 2028, the company said. A second phase aims to increase capacity to 500MW between 2028 and 2031, followed by further development after 2031, the company added.
"If constructed in full, this project could become one of the largest data centres in the UK, attracting billions in inward investment, supporting the North’s reindustrialisation and strengthening sovereign AI capability," Drax Group CEO Will Gardiner said.
The site spans 1,000 acres with 4GW of grid access, 2.6GW of active dispatchable generation, and cooling systems, according to the statement.
The development comes as Europe lags behind AI infrastructure development. The U.S. has surged ahead, while the UK has grappled with high energy costs and long waits for grid connections.
In October, it was reported that Microsoft had pulled out of a deal to anchor an Nscale data centre just outside London, amid delays connecting to the country's power grid.
The Office of Gas and Electricity Markets says developers are seeking grid connections totalling 72GW, compared with peak UK electricity demand of 45GW last year, BBC reported.