Brookfield is planning an artificial intelligence data center project in northern England that could attract more than £20 billion ($26.8 billion) in investment, as Europe seeks to expand the computing infrastructure needed to support AI development amid constraints on electricity supply, land availability and grid connections.
Drax Group, the London-listed energy company, said Tuesday it had signed an agreement with Brookfield and the asset manager’s neocloud platform, Radiant, to jointly develop the facility on the estate of Drax Power Station in North Yorkshire. Drax shares rose 8.8% in early morning trading following the announcement.
The project is initially targeting up to 100 megawatts (MW) of computing capacity, with operations expected to begin in the first quarter of 2028. A further 500 MW is planned between 2028 and 2031, while the partners are seeking to secure more than 1 gigawatt (GW) of capacity at the site at an unspecified date.
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Brookfield estimates that total investment could exceed £20 billion, including spending on semiconductors. The first phase alone is expected to involve an initial investment of £2.5 billion.
The scale of the proposed development places it among the major AI infrastructure projects being considered in Britain, where technology companies and investors are seeking sites capable of supporting energy-intensive computing operations.
“This is a unique opportunity for the UK’s AI ecosystem to build at scale,” Radiant CEO Mahdi Yahya said in a statement. “By designing, building and operating from the UK, it will give British researchers, startups and enterprises access to frontier compute at home.”
The first phase will use electricity from the national grid and is expected to target commercial customers from early 2028. However, the development remains subject to several conditions.
Drax said the initial phase requires planning, regulatory and network approvals from the government and relevant agencies. The partners must also secure a tenant before proceeding, and final investment decisions have not yet been made.
Those conditions are significant given the difficulties facing data center developers in Britain. Securing land and investment is only part of the process. Large facilities require substantial and reliable electricity supplies, while delays in connecting to the grid can affect construction schedules and the economics of projects.
The proposed expansion from 100 MW to 600 MW, followed by a longer-term ambition to exceed 1 GW, is largely based on the partners’ ability to secure sufficient power capacity and complete the necessary infrastructure approvals.
The inclusion of semiconductors in Brookfield’s investment estimate also highlights the capital requirements of modern AI facilities. Data center spending extends beyond buildings and electricity infrastructure to include expensive computing equipment, particularly advanced processors used to train and operate AI models.
Radiant’s involvement gives Brookfield a platform focused on providing computing capacity to customers rather than simply developing property and power infrastructure. The project is intended to serve businesses and research institutions seeking access to advanced computing resources within the UK.
The project comes as Europe tries to narrow its AI infrastructure gap with the United States, where major technology companies have moved aggressively to develop large-scale data centers.
Britain has faced particular challenges from high energy costs and lengthy waits for grid connections. These constraints have made it harder for developers to bring large computing facilities online quickly, even as demand for AI processing capacity increases.
In October, reports emerged that Microsoft had withdrawn from a deal to anchor an Nscale data center outside London amid delays in securing a connection to the national electricity grid. Nscale said at the time that it remained committed to the project and was exploring alternative power sources for the site.
The episode shows that electricity access has become a central factor in competition for AI infrastructure investment. Developers must assess not only the availability and cost of power but also the time required to connect facilities to the grid and the ability to expand supply as computing demand grows.
The Nordic countries have attracted major commitments partly because of their access to abundant electricity and available land. Finland, in particular, has emerged as a destination for large-scale AI infrastructure investment.
In September, Google announced plans to invest at least €13 billion ($15.1 billion) in AI infrastructure in Finland, its largest single investment in Europe. The commitment reflects the region’s appeal to technology companies seeking locations where energy availability can support large computing workloads.
Brookfield’s proposed North Yorkshire development offers Britain an opportunity to attract a similarly large project.
The longer-term ambition of more than 1 GW also raises questions about how quickly the UK can expand the electricity infrastructure needed to support AI. A project of that scale would require sustained coordination between the developers, grid operators and regulators.