Drax plans to transform former coal plant into gigawatt N Yorks AI data centre

Drax Power Limited has submitted plans to develop two modest data centre buildings near Drax Power Station, signalling a broader strategy to repurpose energy sites into digital infrastructure hubs amid rising AI demand and environmental considerations.

Plans to build two modest data centre buildings on land immediately north of Drax Power Station have been submitted to North Yorkshire Council by Drax Power Limited, according to the local planning filing seen by The Northern Echo. The proposal describes two structures totalling about 4,960 sq metres, rising to 15m and three storeys, together with a sprinkler plant room and tank, access roads, loading bays and parking on land currently used for storage. ^[1]

Supporting documents lodged with the council include a screening opinion application that argues an environmental impact assessment (EIA) is not required, stating: “It is considered that whilst the development is major in scale, the development would not result in such significant or complex effects on the environment as to warrant an EIA. The environmental effects of the proposed development are likely to be of local significance only and can therefore be fully assessed through a comprehensive suite of technical assessments and appropriately mitigated without the need for an EIA.” North Yorkshire Council has agreed with that assessment and ruled an EIA unnecessary. ^[1]

While the local submission covers a relatively small built footprint, the planning activity sits alongside much larger ambitions for the Drax site. According to The Guardian, Drax Group has announced plans to convert part of its North Yorkshire power plant into a 100-megawatt data centre by 2027, using existing land, cooling systems and transformers as part of a diversification strategy to meet rising demand for AI capacity. ^[2]

Company statements and industry reporting indicate those initial plans are intended as a first phase within a far broader vision. Drax’s own materials describe a potential AI infrastructure project on roughly 250 acres of Drax-owned land with an initial capacity target of about 100 megawatts and an aspiration to reach operation by 2030 while leveraging the site’s generation capacity and cooling infrastructure to provide low-carbon power. Other outlets say the site could expand beyond 100 megawatts to more than 1 gigawatt after 2031, repurposing former coal-generation units and existing grid connections. ^[3][4][6]

Financial and investor commentary frames the data centre push as part of Drax’s wider pivot into flexible generation and digital infrastructure. Industry coverage and company briefings note Drax is preparing planning applications for an initial 100-megawatt facility aimed at operation around 2027, and that the group expects the projects to support corporate earnings and regional economic development. The company has also referenced mechanisms within government contracts that could allow it to request additional power to support data-centre loads. ^[5][7]

The local screening application reinforces a recurring theme in the sector: growing demand for data-centre capacity driven by AI and cloud services, and a preference among operators to reuse existing industrial sites and grid connections to reduce costs and environmental impact. The proposal for the two buildings at Drax Power Station is thus presented as a piece of a larger strategy to repurpose energy infrastructure for digital demand, even as detailed environmental and planning assessments for larger phases continue to be developed. ^[1][2][3][6]

📌 Reference Map:

##Reference Map:

• ^[1] (The Northern Echo) – Paragraph 1, Paragraph 2, Paragraph 6
• ^[2] (The Guardian) – Paragraph 3, Paragraph 6
• ^[3] (Drax corporate materials) – Paragraph 4, Paragraph 6
• ^[4] (Upday) – Paragraph 4
• ^[5] (DirectorsTalkInterviews) – Paragraph 5
• ^[6] (DataCenterDynamics) – Paragraph 4, Paragraph 6
• ^[7] (Yahoo Finance) – Paragraph 5

Source: Fuse Wire Services