Drax Plans £20 Billion AI Data Centre at North Yorkshire Biomass Site

The partnership with AI infrastructure specialist Radiant seeks to bypass long-standing grid connection delays that have plagued recent UK tech projects. Drax CEO Will Gardiner stated the initiative is designed to anchor the site’s long-term viability, protect local employment, and bolster regional economic growth. Markets reacted sharply to the news, sending Drax shares up 8.5 per cent to 877p on Tuesday morning, positioning the stock as the FTSE 250's top riser.

This development aligns with recent government signals from the Chancellor, who proposed the 'British Data Centre Covenant' to expedite grid access for critical facilities. By allowing developers to utilize onsite generation, the government hopes to alleviate the bottleneck that recently forced Microsoft to abandon a proposed project in Essex. Despite the financial enthusiasm, the plan faces significant environmental scrutiny. Critics argue that relying on wood-burning biomass to power energy-intensive AI infrastructure remains ecologically contentious, potentially reigniting debates over carbon emissions and the legitimacy of government green energy subsidies previously granted to the company.