Microsoft to open huge data centre in Leeds

Graeme Whitfield & Wayne Ankers
·2-min read

Computing giant Microsoft has sealed a £106m deal to develop a massive data centre at the former Skelton Grange power station near Leeds.

Rotherham-based development group Harworth has announced the deal - the largest in its history - saying the 44-acre development will bring up to £4bn into the local economy, as well as creating many well-paid jobs. Harworth said it had reached a deal to sell half of the site this year for £52.9m, with the second portion of the land scheduled to be sold sale in 2026 for a further £53.2m.

As part of the deal, Harworth will secure addition power capacity for the site to fuel the data centre. Microsoft had previously said it wanted to create a data centre - specialised facilities equipped with computer servers, storage systems and security measures that support online services - on the site of a former power station at Eggborough.

READ MORE: Two major Leeds banks covered in red paint by Palestine Action group

It is not currently clear whether the US giant has switched its attention to the Skelton Grange site or if the new announcement is a second development. When outlining the Eggborough development, Microsoft had said that “data centres make a significant and long-term impact on the local and regional economy” and that it would create “well-paid local and regional jobs, both during construction and operation”.

The company did not say how many jobs would be created, however. Harworth said that the massive deal showed the success of its strategy to develop industrial and logistics sites, and that it would use the proceeds from the sale to reinvest in that sector.

Lynda Shillaw, chief executive of Harworth Group, said: “Since re-listing in 2015 Harworth has successfully completed a number of significant transactions that create value for our shareholders but this sale at Skelton Grange is the group’s largest to date and is yet another exemplary case study that demonstrates the successful regeneration of brownfield land.

“It highlights Harworth’s capabilities in identifying and acquiring complex sites, creating planning-friendly masterplans that maximise site potential, and deploying timely and effective investments into remediation and infrastructure. This transaction further builds our expertise to include datacentres and evidences the growing spectrum of industries that continue to be attracted to the schemes that Harworth brings to the serviced land market.”

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