Drax Group is exploring the conversion of part of its former coal-fired power operations in Yorkshire, England, into a large-scale data centre as early as 2027, according to reporting from Reuters.
The company aims to repurpose land, grid connections and cooling infrastructure that date back to the site’s coal-generation era.
The move reflects a wider trend across Europe in which tech companies seek to acquire legacy energy sites that already have access to substantial power and water capacity - an increasingly attractive option as electricity demand surges due to artificial intelligence.
Drax is preparing a planning application for an initial 100-megawatt data centre, with the possibility of expanding the site to more than 1 gigawatt after 2031.
Chief Executive Will Gardiner told Reuters the company intends to provide the land, power infrastructure and electricity supply in partnership with a specialist data-centre developer.
The strategy comes amid rapid growth in the UK data-centre market, where operators often face years-long waits for new grid connections.
Existing power-station sites offer a shortcut to deployment.
Investors reacted positively to the update, with Drax shares rising around 2% after the company indicated its 2025 earnings outlook was tracking towards the upper end of expectations.
Drax outlines plan to convert coal-era facilities into data centre by 2027
