{
  "id": 17992298,
  "title": "Drax Unveils £20 Billion AI Data Centre Plans at UK Biomass Plant",
  "url": "https://urgent.news/2026/11/03/drax-unveils-20-billion-ai-data-centre-plans-at-uk-biomass-plant",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-03T17:00:00.000Z",
  "source": {
    "name": "OilPrice",
    "slug": "oilprice",
    "url": "https://oilprice.com/Energy/Energy-General/Drax-Unveils-20-Billion-AI-Data-Centre-Plans-at-UK-Biomass-Plant.html"
  },
  "original_language": "en",
  "account": "Drax, a FTSE 250 energy company, has announced plans to construct a new data centre at its North Yorkshire biomass plant. The plant primarily uses wood pellets as fuel, with additional sources being straw and sunflower pellets. The company aims to utilize the surplus energy capacity at the plant to power the data centre, in collaboration with AI infrastructure business Radiant. Drax envisions the data centre to have a total capacity exceeding one gigawatt, with the initial phase delivering up to 100 megawatts by 2028 and the second phase adding another 500 megawatts by 2031. The potential investment, encompassing semiconductor chips, could surpass £20 billion, with an initial £2.5 billion allocated to the first phase of development. Drax's boss, Will Gardiner, stated that the scheme would help secure the plant's long-term future, protect hundreds of jobs, maintain a vital energy source for the country, promote northern growth, and enable continued support for local communities. Drax shares experienced an 8.5% increase to 877p following the announcement, making the stock the largest riser on the FTSE 250. This development follows the UK government's decision to allow data centres to use onsite generation while awaiting a grid connection, as announced by Chancellor John Healey in his Budget speech. The Chancellor introduced a British Data Centre Covenant, outlining strict criteria for data centres to invest in local communities, create jobs, and protect local water supplies. The announcement comes in response to frustration expressed by AI hyperscalers due to lengthy delays in securing grid connections for data centre projects. Microsoft recently withdrew from a tie-up with UK neocloud firm Nscale, owing to the inability to secure a grid connection for their proposed data centre project in Essex until at least 2030. However, Drax's decision may draw criticism from environmental groups concerning the carbon emissions generated by burning wood to power AI infrastructure. Reports have suggested that burning wood for power generation might be more detrimental to the climate than burning gas, even when carbon dioxide emissions are captured. Drax has previously encountered scrutiny over its receipt of government green energy subsidies, and its utilization of wood pellets is deemed a renewable energy source.",
  "summary": "Energy company Drax has unveiled plans to build a new data centre at the site of its North Yorkshire power plant, which uses wood as fuel. The FTSE 250 firm’s biomass plant is predominantly powered by wood pellets, but also uses straw and sunflower pellets. The company said it intends to use surplus energy capacity at the plant to power the new facility, in a new partnership with AI…",
  "key_points": [
    "Drax plans £20 billion AI data centre at North Yorkshire biomass plant.",
    "Initial phase delivers 100 megawatts by 2028, second phase adds 500 megawatts by 2031.",
    "Investment could surpass £20 billion, with £2.5 billion for first phase."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}