GS Utilities Daily: Drax Group: Strategic partnership for >1GW data centre a positive// RWE: Gas plants auction brings upside to our base

The note highlights two developments. Drax confirmed it has signed an agreement with Brookfield and Radiant, Brookfield's UK-headquartered AI infrastructure platform, to jointly develop, deliver and operate an AI data centre on the Drax Power Station estate in the north of England. We view the announcement as a positive, adding visibility to Drax's data centre development aspirations. Our base case in the Drax SoTP assumes a 100MW data centre in 2028, an additional 500MW by 2031 and a further 500MW in 2032, at 0.87mn pounds per MW, equating to 2.06 pounds per share; no value is attributed to a signed PPA. The Capital Markets Day on 23 November 2026 is the next catalyst, where we expect the 2029 adjusted EBITDA target to be raised from 650-800mn pounds ex-BSIF to 800-950mn pounds including BSIF, a c.14% upgrade to consensus at the midpoint. We reiterate Buy on Drax with a 1,034p price target, implying c.28% upside. On RWE, the German government awarded contracts for 2GW across three new