Drax Unveils Ambitious Plan to Convert Power Plant into Datacentre Amid AI Surge
As part of a bid to diversify its operations and capitalize on the growing demand for artificial intelligence capabilities, energy giant Drax has announced plans to convert a significant portion of its North Yorkshire power plant into a 100-megawatt datacentre by 2027. The move is expected to utilize existing infrastructure, including land, cooling systems, and transformers previously dedicated to coal generation.
The company's decision comes as it seeks to safeguard demand for its electricity in light of government plans to reduce subsidies for energy production. In recent weeks, the UK government has signaled that it will cut the amount of electricity subsidized by bill payers from 2026, a move expected to impact companies like Drax.
Drax, which operates Britain's largest power plant, revealed the plans as part of its latest trading update. The company is poised to benefit from subsidies worth over £2 million per day, primarily due to its use of biomass as a renewable energy source. However, critics have questioned the sustainability of this approach, with recent reports highlighting concerns over the sourcing of wood pellets used by Drax.
Experts have raised eyebrows about the company's claims regarding its wood pellet sourcing practices, suggesting that it may be using materials from ecologically valuable forests. In response to these allegations, Drax has maintained that it uses only biomass sourced from "well-managed, sustainable forests".
Despite this, the decision to invest in a datacentre represents a significant shift for Drax as it seeks to adapt to changing market demands and government policies. The move is expected to draw electricity from the national grid initially but may also have potential for using renewable energy from the plant in the future.
The plan marks another milestone in the company's efforts to mitigate the impact of reduced subsidies, while also navigating the growing trend towards AI-driven technologies.
As part of a bid to diversify its operations and capitalize on the growing demand for artificial intelligence capabilities, energy giant Drax has announced plans to convert a significant portion of its North Yorkshire power plant into a 100-megawatt datacentre by 2027. The move is expected to utilize existing infrastructure, including land, cooling systems, and transformers previously dedicated to coal generation.
The company's decision comes as it seeks to safeguard demand for its electricity in light of government plans to reduce subsidies for energy production. In recent weeks, the UK government has signaled that it will cut the amount of electricity subsidized by bill payers from 2026, a move expected to impact companies like Drax.
Drax, which operates Britain's largest power plant, revealed the plans as part of its latest trading update. The company is poised to benefit from subsidies worth over £2 million per day, primarily due to its use of biomass as a renewable energy source. However, critics have questioned the sustainability of this approach, with recent reports highlighting concerns over the sourcing of wood pellets used by Drax.
Experts have raised eyebrows about the company's claims regarding its wood pellet sourcing practices, suggesting that it may be using materials from ecologically valuable forests. In response to these allegations, Drax has maintained that it uses only biomass sourced from "well-managed, sustainable forests".
Despite this, the decision to invest in a datacentre represents a significant shift for Drax as it seeks to adapt to changing market demands and government policies. The move is expected to draw electricity from the national grid initially but may also have potential for using renewable energy from the plant in the future.
The plan marks another milestone in the company's efforts to mitigate the impact of reduced subsidies, while also navigating the growing trend towards AI-driven technologies.
This Drax move is super interesting. I mean, they're repurposing a power plant that was already running on biomass to create a datacentre - talk about maximizing resources! But at the same time, you've got to wonder if this is just a clever way for them to stay afloat while the government's subsidies are reduced. I'm not buying the whole "well-managed, sustainable forests" thing either... it sounds like they're dodging the real issue here: how they source those wood pellets in the first place 
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just saw this thread and I gotta say its weird that Drax is doing this datacentre thing 
? Like what's the point of investing in all that infrastructure if you're just gonna repurpose it for something else? And also can someone explain to me how they plan on using this datacentre without harming the environment? 
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. Plus, Drax has already got some solid credentials when it comes to using biomass as a renewable energy source – they're not just trying to wing it and hope for the best 
. They've got a reputation for being responsible with their biomass usage, and this plan just shows they're committed to reducing their carbon footprint even more 
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. They seem like they're doing some smart stuff, and who knows? Maybe this datacentre thing will be the key to unlocking a whole new world of tech innovation 
!
and who cares about the subsidies thing? they're still gettin that sweet £2 million daily subsidy 
Maybe it's just me, but I'd rather see them invest in actual sustainable energy sources instead of playing it safe. 
. With AI on the rise and government plans to reduce subsidies, they need to get creative 
. That's the kind of innovative thinking we need more of! Can't wait to see how this project unfolds 
they need to get their act together on sourcing that stuff.
anyway, hope Drax can make sustainable choices on their wood pellet sourcing 
. I mean, if they're really committed to sustainability shouldn't they be using renewable energy sources that don't harm the environment? 
. WE NEED TO MAKE SURE THEY'RE TELLING THE TRUTH ABOUT WHERE THEIR WOOD PELLETS ARE COMING FROM! 
. Drax is just trying to cling to its old ways instead of innovating and finding new ways to use its resources. I mean, who needs more power plants when we can have a bunch of fancy servers humming away? It's like they're trying to be the 'cool kid' in the energy game. And don't even get me started on their wood pellet sourcing claims... 
it sounds like just another PR stunt to me.
and what about the impact on the grid and other companies who are trying to reduce their carbon footprint? 
. Plus, who knows, maybe this new venture will inspire more sustainable practices on their biomass sourcing 
I need some credible sources on this one before I start cheering them on 