Finance

Drax plans to turn coal-era infrastructure into data centre by 2027

Published by Global Banking & Finance Review

Posted on December 11, 2025

1 min read

· Last updated: January 20, 2026

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Drax plans to turn coal-era infrastructure into data centre by 2027
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Dec 11 (Reuters) - Britain's Drax said on Thursday it could repurpose existing infrastructure and grid links at its Yorkshire power station to run a data centre as soon as 2027, using resources once

Drax to Transform Coal Infrastructure into Data Centre by 2027

Dec ‌11 (Reuters) - Britain's Drax said on ‍Thursday ‌it could repurpose existing infrastructure and grid ⁠links at ‌its Yorkshire power station to run a data centre as soon as 2027, ⁠using resources once dedicated to coal.

"Drax is ​preparing a planning application to ‌support the potential ⁠option for a first phase data centre of about 100 megawatts ​on land identified at Drax Power Station," it said in a statement.

The company also said it expects ​to ‍report full-year ​2025 core profit around the top end of the market estimates, as the UK's power generation demand grows. 

Analysts expect Drax to report a ⁠core profit of between 892 million pounds and 909 ​million pounds ($1.19 billion and $1.21 billion) for 2025, according to a company-compiled consensus.

($1 = 0.7482 pounds)

(Reporting by ‌Raechel Thankam Job in Bengaluru; Editing by Nivedita Bhattacharjee and Rashmi Aich)

Key Takeaways

  • Drax plans to convert its Yorkshire power station into a data centre.
  • The data centre will use existing coal infrastructure.
  • Drax's first phase data centre will be about 100 megawatts.
  • Full-year 2025 core profit expected at top market estimates.
  • Analysts predict Drax's 2025 core profit between £892m and £909m.

Frequently Asked Questions

What is a data center?
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems. It is crucial for managing data and supporting IT operations.
What is core profit?
Core profit refers to the profit generated from a company's primary business operations, excluding any income derived from non-operational activities or one-time events.
What is power generation?
Power generation is the process of producing electricity from various energy sources, including fossil fuels, nuclear, and renewable energy sources like wind and solar.
What is market capitalization?
Market capitalization is the total market value of a company's outstanding shares of stock, calculated by multiplying the share price by the total number of shares.
What is a planning application?
A planning application is a formal request submitted to a local authority for permission to carry out development or changes to land or buildings.

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