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Drax Group announced plans to convert part of its power plant in Yorkshire, Northern England into a data center by 2027. The project will repurpose land, cooling systems, and transformers previously used for coal generation, responding to the increasing energy demands driven by the AI boom.

Former coal and gas power plants are attracting tech giants like Microsoft and Amazon Web Services as they seek to transform these facilities into new data centers, leveraging existing infrastructure, high-capacity grid connections, and proximity to water sources for cooling needs. Drax plans a 100 megawatt data center, with a building permit underway, aiming to expand capacity to over 1 gigawatt by 2031 to meet rising UK electricity demand. Drax anticipates generating £3 billion in free cash flow between 2025 and 2031, with over £1 billion allocated to shareholder returns and up to £2 billion for growth investments, while also closing its Williams Lake pellet plant in Canada.