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Drax Shares Jump 8% After $27B AI Data Center Plan
Why did Drax stock jump 8%?
Drax (DRX.L) shares rose more than 8% to about 879p on Tuesday after Drax and Brookfield unveiled a data center plan that could top $27 billion, a bet on AI demand for power.
Key numbers
| Total potential investment | £20B+ ($26.8B)Brookfield estimate, incl. chips |
|---|---|
| Phase 1 investment | £2.5BUp to 100 MW from early 2028 |
| Drax intraday move | 878.75p+8.6% on Nov 3 |
| Drax close | 862.5p+6.6% on Nov 3 |
| Grid connection at site | 4 GWTarget above 1 GW data center |
What happened
Drax (DRX.L) shares rose more than 8% to about 879p on Tuesday after Drax and Brookfield unveiled a data center plan that could top $27 billion, a bet on AI demand for power. Drax runs a large power station in North Yorkshire. It agreed with investment giant Brookfield and its AI arm Radiant to build a data center there, a huge building full of computers that run AI. A first phase of up to 100 megawatts is due in early 2028, with plans to pass 1 gigawatt later. By the close, shares were up 6.6% at 862.5p.
Why it matters
Drax is trying to turn an existing power station site, with a 4-gigawatt grid connection, into a home for AI computing, which needs huge amounts of electricity. The UK aims to have 6 gigawatts of data centers by 2030, so a 1-gigawatt site would be a big share. JPMorgan said the deal could help the plant keep running past 2031, when its subsidy ends, but Citi called it "more like an MOU" (a non-binding agreement) than a firm contract.
Who this affects
- MarketbullishLow impact
- UK investors in power and AI infrastructure see new demand.
- CompanybullishMedium impact
- Drax shareholders gained, though no final investment decision exists.
- CompetitorsneutralLow impact
- SSE rose only 0.6%, showing little spillover.
- IndustrybullishMedium impact
- UK data center builders gain a large, grid-connected site.
Drax vs SSE, Centrica
| DraxDRX.L | 862.5p | +6.6% | Brookfield AI data center plan |
|---|---|---|---|
| SSESSE.L | 2,612p | +0.6% | — |
| CentricaCNA.L | — | +3.6% | Jefferies upgrade to buy |
As of 2026-11-03
How we got here
Drax, Brookfield and Radiant announce AI data center partnership; shares jump over 8%.
First phase of up to 100 MW due, with £2.5B initial investment.
Drax's current subsidy scheme expires; 500 MW phase due by 2031.
What to watch
- Final investment decisions and planning approvals; none reached yet, per Citi.Not yet set
- Whether a tenant is signed and financial terms are disclosed.Not yet set
- Expiry of Drax's subsidy scheme and plans beyond it.2031-03
Educational content only. Not investment advice.
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