Drax Group is examining plans to convert part of its former coal-fired power operations in Yorkshire, England, into a large data centre as early as 2027, according to a report from Reuters.
As per the Bioenergy Insight, the company intends to make use of land, grid links and cooling systems that were originally built for coal generation. The effort reflects a growing trend across Europe, where technology companies are turning to legacy energy sites that already have strong access to power and water—an increasingly appealing option as electricity demand rises due to artificial intelligence.
Drax is preparing a planning application for an initial 100-megawatt data centre, with the potential to expand the site to more than 1 gigawatt after 2031. Chief Executive Will Gardiner told Reuters the company aims to supply the land, power infrastructure and electricity in collaboration with a specialist data-centre developer.
The plan comes at a time of fast expansion in the UK data-centre market, where operators often face long waits to secure new grid connections. Existing power-station sites offer a faster path to development.
Investors responded positively to the update, with Drax shares rising about 2% after the company said its 2025 earnings outlook was moving towards the upper end of expectations.
