Microsoft Data Centre Leeds Planning Approval at Skelton Grange

Microsoft data centre Leeds scheme receives planning approval for 500,000 sq ft hyperscale campus at Skelton Grange, with Harworth Group land deal worth over £104m

Leeds City Council’s planning committee has approved a hyperscale Microsoft data centre Leeds campus at Skelton Grange, in what Harworth Group describes as a scheme that will deliver around £4 billion in inward investment when fully complete. The approval covers full planning permission for approximately 500,000 sq ft of data centre space across three halls and auxiliary buildings, plus outline permission for 160,000 sq ft of industrial and logistics space with EV charging on Harworth’s adjoining 16-acre plot. The site sits on the south-east edge of the city between the Aire and Calder Navigation and the M1.

Why This Matters For Leeds

A Microsoft hyperscale data centre in Leeds is one of the most significant inward investment announcements the city has seen. Beyond the data centre itself, the approval signals that Leeds has the power infrastructure, planning appetite, and strategic positioning to compete for the next wave of AI and cloud computing investment. Read more Leeds business news across all sectors.

What the Microsoft Data Centre Leeds Approval Covers

The planning application, submitted by MSFT MCIO Limited (Microsoft’s data centre infrastructure arm), received a resolution to grant from Leeds City Council’s Plans Panel on 23 April. Final approval is subject to conditions and completion of a Section 106 agreement. The scheme is split across two plots. Harworth completed the sale of Plot 1 to Microsoft in June 2024 — 27 acres for a gross consideration of £51.2 million. Plot 2 comprises a further 21 acres where Harworth is delivering enabling works, with a sale to Microsoft on completion worth an additional £53.2 million. The combined land deal totals over £104 million. Harworth is also carrying out site remediation and enabling works across both plots on Microsoft’s behalf.

“”This transaction has driven group level value growth and facilitates investment in the region, catalysing economic growth, with Skelton Grange estimated to deliver c. £4bn of inward investment when the development completes.””

— Lynda Shillaw, Chief Executive, Harworth Group

Skelton Grange and What Comes Next

The Microsoft data centre Leeds campus is part of Harworth Group’s wider Skelton Grange development, which sits adjacent to its established Gateway 45 logistics park off the M1 at Junction 45. Harworth says its 16 acres of adjoining land and the Gateway 45 site provide capacity for further development beyond the Microsoft scheme. The company also highlights a further 0.8GW of power connections across its wider portfolio — positioning it to capture demand from data centres and other power-intensive sectors as AI infrastructure investment accelerates. Harworth Group is listed on the London Stock Exchange (HWG) and will announce a Q1 2026 trading update at its AGM on 18 May.