What’s Happened
Former Coal Plant Sold to Amazon
- German energy company RWE has sold the site of the former Didcot A coal-fired power station in Oxfordshire, UK to Amazon for development into a large data centre. The plant has been idle since its closure and demolition, making the site available for redevelopment. (Data Center Dynamics)
- The sale price was reported as about $265 million. (Data Center Dynamics)
- The buyer is understood to be Amazon Data Services / Amazon Web Services (AWS), although RWE did not publicly name the purchaser in its earnings commentary. (Data Center Dynamics)
Background on the Site
Didcot A History
- Didcot A was a combined coal and oil power station that opened in 1970 and was decommissioned and demolished in phases between 2014 and 2020. (Data Center Dynamics)
- RWE retained the land and envisaged redevelopment opportunities, including data centre use, because the site has strong grid connections and infrastructure due to its history as a power station. (RWE)
Development Plans: Data Centre Project
Planning and Project Scope
- Planning applications linked to the site have been progressing over the past few years. Early applications—initially submitted under a nominal company name—proposed data centre buildings with extensive floorspace and demolition of existing structures. (Data Center Dynamics)
- Vale of White Horse District Council previously approved planning for data centre development on the former power station site, signaling local planning support for the transition of land use from coal generation to digital infrastructure. (Baxtel)
- The project is described in local planning documents as involving demolition of remaining infrastructure and construction of a single or multi-building data centre. (Data Center Dynamics)
Commercial & Financial Context
Impact on RWE
- In a recent quarterly report, RWE booked a substantial gain from selling the UK data centre project, which helped lift profit expectations despite broader operational pressures. Analysts see this as part of a rising trend of energy companies monetising former plant sites for data infrastructure use. (KELO-AM)
- RWE executives have indicated they are exploring multiple data centre deals across Europe, pointing to growing demand from cloud and AI infrastructure players for power-ready sites. (TradingView)
Amazon’s Strategic Move
- AWS’s interest in the site fits a broader pattern of hyperscale cloud providers acquiring or developing land connected to strong energy and fibre infrastructure, as data centre demand continues to grow globally. (Data Center Dynamics)
- Amazon itself is expanding multiple UK cloud region and data centre projects, including other campuses and cloud infrastructure hubs. (Data Center Dynamics)
Community & Local Considerations
Economic & Planning Comments
- Local planning officials have noted data centres can be suitable uses for industrial land and may provide jobs, though there are mixed views on impacts such as traffic or employment changes compared with other uses. (Baxtel)
- Some local commentary has raised concerns that data centre development could reduce employment floorspace compared with prior industrial uses, though planning authorities generally approve such developments where consistent with local economic strategy. (Yahoo News)
Broader Context: Energy Transition & Land Reuse
From Coal to Digital Infrastructure
- The Didcot site is emblematic of a broader shift in land use in former fossil fuel regions — repurposing coal generation footprints for low-emission or digital economy infrastructure. Data centres require significant power connections, which such sites are well positioned to offer. (RWE)
- National Grid has been investing in upgrades around Didcot to support new high-load users like data centres and battery storage, reflecting changing grid demands tied to electrification and digital growth. (Data Center Dynamics)
What Happens Next
- The data centre development is still going through consultation and planning confirmation stages, with a target decision date set by the council in early 2026 for final approvals. (Data Center Dynamics)
- Construction timelines will depend on final planning sign-off, environmental assessment, and grid connection arrangements, which are typical for large hyperscale data centre projects.
Key Takeaways
| Aspect | Details |
|---|---|
| Seller | RWE (German power producer) |
| Buyer | Amazon / AWS (hyperscaler) |
| Site | Former Didcot A coal power station, Oxfordshire, UK |
| Deal Value | Approx. $265 million |
| Planned Use | Data centre development (demolition and new construction) |
| Economic Context | Part of broader trend of repurposing industrial energy sites for digital infrastructure |
| Status | Pending local planning and consultation (decision expected early 2026) |
Below is a case-study–led analysis with stakeholder comments on RWE selling the former Didcot A coal power plant site to Amazon for data-centre development, explaining why the deal matters, how it fits wider trends, and what different groups are saying.
Case Study 1: From Coal Power to Cloud Infrastructure (Didcot A)
Background
- Didcot A, once one of the UK’s most recognisable coal-fired power stations, closed in 2013 and was fully demolished by 2020.
- The site retained exceptionally strong grid connections, making it attractive for power-hungry uses like data centres.
- RWE, which owned the land, explored redevelopment options before selling it in 2025 to Amazon (AWS) for data-centre use .
Outcome
- The site will be redeveloped into a hyperscale data-centre campus, supporting Amazon’s growing cloud and AI infrastructure needs in the UK.
- Analysts estimate the sale value at around $265 million, representing a significant one-off gain for RWE .
Why this case matters
This is a textbook example of how fossil-fuel infrastructure is being repurposed for the digital economy, rather than left idle or redeveloped for housing or logistics.
Case Study 2: RWE’s Strategy – Monetising Legacy Energy Assets
RWE’s perspective
- RWE has been actively recycling capital by selling former coal and gas assets and reinvesting in renewables, grids, and flexibility.
- The Didcot sale fits a broader pattern where energy companies monetise grid-connected land as demand for data centres surges across Europe.
Financial impact
- Equity analysts described the transaction as a “data-centre payday” for RWE, helping offset volatility in power markets and supporting earnings guidance .
Comment (analyst view)
Former power-station sites are uniquely valuable because grid access is already solved — often the hardest part of new data-centre development.
Case Study 3: Amazon’s UK Data-Centre Expansion Playbook
Strategic rationale
- Amazon Web Services continues to expand UK capacity to support cloud computing, AI workloads, and enterprise demand.
- Former power-plant sites like Didcot offer:
- High-capacity grid connections
- Industrial zoning
- Lower community resistance than greenfield sites
Comparable examples
- AWS and other hyperscalers have pursued similar redevelopments in Germany, the Netherlands, and the US, targeting ex-industrial or energy assets to accelerate deployment timelines.
Comment (industry context)
Data-centre specialists note that power availability now matters more than land price, making sites like Didcot strategically critical .
Case Study 4: Local Planning and Community Reaction
Planning stance
- Vale of White Horse District Council previously approved data-centre use for the Didcot A site, recognising it as an appropriate continuation of industrial land use .
Community views
- Supportive voices highlight investment, construction jobs, and reuse of a brownfield site.
- Critical voices argue data centres:
- Create fewer long-term jobs than traditional industry
- Consume large amounts of electricity and water
Comment (local concern)
Local commentators have questioned whether data centres deliver enough employment density compared with alternative developments, even when planning rules allow them.
Case Study 5: Energy Transition and the “Coal-to-Cloud” Trend
Wider pattern
- Across Europe, retired coal plants are being converted into:
- Data centres
- Battery storage hubs
- Grid substations for renewables
Didcot’s symbolic role
Didcot A has long been a symbol of the UK’s coal era. Its redevelopment for cloud computing highlights how:
- Energy demand is shifting from heavy industry to digital infrastructure
- Climate policy, electrification, and AI growth are reshaping land use
Comment (policy & infrastructure view)
Former coal sites are increasingly seen as strategic national infrastructure assets, not relics — especially as electricity demand from data centres accelerates.
Key Takeaways
| Theme | Insight |
|---|---|
| RWE strategy | Turning legacy coal assets into capital for clean-energy investment |
| Amazon strategy | Securing power-rich sites to support cloud and AI growth |
| Planning impact | Brownfield energy sites face fewer approval hurdles |
| Community debate | Investment vs job creation and energy consumption |
| Bigger picture | A clear shift from coal generation to digital power demand |
Final Thought
The Didcot A deal is more than a property sale — it’s a case study in how the energy transition and digital transformation intersect, turning yesterday’s coal infrastructure into tomorrow’s cloud backbone.