Drax's Data Center Plan: A Strategic Shift
Update: 2025-12-11
Description
Drax, a UK-based energy generator, unveils plans to construct a data center at its Yorkshire site, aiming to optimize its existing infrastructure. The company, which has faced environmental scrutiny over its use of imported wood pellets for power generation, is preparing a planning application for an initial data center with a hundred megawatts of capacity. This move comes as the UK government plans to cut subsidies by two thousand twenty-seven, prompting Drax to sign a new subsidy agreement to reduce its reliance on current energy sources and taxpayer subsidies. The company expects to invest up to two billion pounds in flexible and renewable energy, with strong core profits anticipated for two thousand twenty-five. This strategic shift into data centers reflects Draxs efforts to adapt to changing regulatory landscapes and public perception, while securing its financial future and delivering value to shareholders.
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