Brookfield Targets $27 Billion AI Data Center Project at UK Power Station

Brookfield is moving forward with plans for a major AI data center in northern England, as demand for computing infrastructure accelerates across Europe. The asset manager has signed an agreement with energy company Drax Group and its neocloud platform Radiant to jointly develop the facility at the Drax Power Station estate in North Yorkshire.

The project is expected to be developed in several phases. The initial phase targets up to 100 megawatts of capacity, with operations expected to begin in the first quarter of 2028. A further 500 MW is planned between 2028 and 2031, while the longer-term ambition is to secure more than 1 gigawatt of capacity at the site.

Brookfield estimates that total investment, including semiconductors, could exceed £20 billion, equivalent to approximately $26.8 billion. The first phase alone is expected to require an initial investment of £2.5 billion. If completed as planned, the development would represent a significant addition to the UK's AI computing infrastructure and create new capacity for businesses, researchers and technology companies.

Radiant CEO Mahdi Yahya described the project as an opportunity to develop large-scale AI infrastructure within the UK. By designing, building and operating the facility domestically, the company aims to provide British startups, researchers and enterprises with access to advanced computing resources without relying entirely on overseas infrastructure.

However, the project remains at an early stage. Its first phase is subject to planning permission, regulatory and grid-network approvals, as well as securing a commercial tenant. Drax also noted that final investment decisions have not yet been made. The initial development is expected to draw electricity from the national grid, making access to reliable power a critical factor in its progress.

The announcement comes as Europe attempts to narrow its AI infrastructure gap with the United States. While American technology companies have moved aggressively to build large-scale data centers, European projects have faced challenges including high electricity costs, limited land availability and lengthy grid connection processes.

The UK's energy constraints have become particularly visible. Microsoft reportedly withdrew from a deal to anchor an Nscale data center project near London amid delays in securing a grid connection, although Nscale has said it remains committed to the development and is exploring alternative power sources.

By comparison, Nordic countries have attracted significant investment due to their abundant electricity and available land. In September, Google announced plans to invest at least €13 billion in AI infrastructure in Finland, marking its largest single investment in Europe.

Brookfield's proposed development highlights how access to power is becoming one of the defining competitive advantages in the global AI infrastructure race. As AI models require increasingly powerful computing systems, data center investment is no longer determined solely by technology and capital availability. Energy supply, grid connectivity and the ability to secure suitable locations are becoming equally important.

For the UK, the project could strengthen its position in Europe's AI ecosystem, provided the necessary infrastructure and regulatory approvals are secured. For Brookfield, it represents a substantial opportunity to invest in the growing demand for AI computing capacity, although the project's scale and long development timeline leave execution risks that investors will need to monitor.