Summary
- Reabold's Stage 1 study proposes approximately 67MW of IT capacity supplied by natural gas generation at West Newton.
- The design includes twelve 15MWe engines, approximately 130MWe of net site generation, and £1.1bn in concept capital costs excluding wells.
- First power is provisionally targeted for the second half of 2030, subject to further engineering, approvals, commercial arrangements, and financing.
Reabold Resources has completed an initial feasibility study supporting the development of a gas-powered data centre at West Newton in East Yorkshire, proposing approximately 67MW of IT capacity alongside dedicated electricity generation.
Reabold Resources confirmed the results on 9 November following a Stage 1 study conducted by engineering group Kent, drawing on its energy and data centre businesses, with support from PMO Hive Group.
The proposed development would use natural gas produced from the West Newton field to generate electricity for a colocated computing facility. The concept is being assessed alongside the alternative of developing the gas resource for supply into the national gas network.
The preliminary design comprises twelve reciprocating gas engines, each rated at 15MWe. Ten would operate as duty units, with two retained as standby units. The study estimates that the operating engines could deliver approximately 130MWe of net generation at the site.
That net figure is lower than the combined nameplate rating of the operating engines and reflects the output assumed available under the preliminary design conditions.
Reabold’s study allocates approximately 110MWe of electrical supply capacity to the data centre, compared with an estimated peak facility demand of 103MW. The difference provides a margin between planned supply and peak consumption, while a further approximately 20MWe of generation headroom is identified above the facility allowance.
The computing design includes ten halls rated at 6.6MW each, contributing to the approximately 67MW IT capacity figure. The wider electrical demand also includes supporting infrastructure, including cooling and power distribution systems.
The data centre would follow Tier III resilience design principles and use air cooling to minimise operational water requirements. Those design intentions do not constitute certification or demonstrate that the proposed facility has been constructed.
Reabold estimates concept capital expenditure of approximately £1.1bn, comprising £385m for the generation plant and £726m for the data centre. These figures exclude development of the gas wells.
The estimates are classified as Class 5, an early engineering category carrying substantial uncertainty. Detailed design, procurement, construction contracts, and site-specific approvals will be required before the investment requirement can be established with greater confidence.
Power costs underpin the development case
The commercial assessment centres on the possibility of generating electricity directly from the gas resource rather than purchasing all power through a conventional grid connection.
Reabold estimates running electricity costs of £44–58/MWh, including assumptions for UK Emissions Trading Scheme carbon costs and operating and maintenance expenditure. Including recovery of the generating plant’s capital costs increases its estimated figure to £107–121/MWh.
The company compares those estimates with a reference price of £217.80/MWh for extra-large UK grid electricity consumers. Using its own assumptions, it calculates potential annual savings of £70m–£80m against approximately 719GWh of annual consumption.
The comparison is illustrative. The reference price is not a confirmed tariff available to every prospective data centre developer, while the cost of electricity from West Newton depends on assumptions about gas production, plant efficiency, operating expenditure, carbon costs, and capital recovery.
The project would also face substantial upfront investment before any potential electricity cost advantage could be realised. The proposed computing capacity would require customers, commercial contracts, construction finance, and an operating structure capable of supporting continuous service.
Dedicated generation could reduce dependence on obtaining a large conventional electricity import connection. It would not remove the need for reliable fuel supply, appropriate generation redundancy, or compliance with applicable environmental and operational requirements.
Gas production is particularly important to the proposal. Reabold’s commercial concept assumes that West Newton can deliver suitable volumes over the life of the generating facility, which will require further technical and reservoir evidence.
Rathlin Energy, the operator of the West Newton field, has separately been preparing recompletion, stimulation, and testing work at the West Newton A-2 well. The programme is intended to provide further information relevant to future production plans.
As the proposed power station would burn natural gas, its environmental assessment would also need to address emissions and the requirements associated with operation. Carbon costs are included in the feasibility calculations, but they do not constitute an environmental permit or establish the project’s overall carbon performance.
Reabold has outlined an indicative development programme targeting first power during the second half of 2030. The target remains conditional on further engineering, land arrangements, permitting, commercial partnerships, and financing.
The Stage 1 study establishes that the integrated gas and computing concept warrants further assessment. It does not represent an investment decision, construction approval, or commitment that the proposed data centre will enter operation.
