Construction is due to start later this summer with practical completion targeted for autumn 2016.
The prominent 30 acre site is located near Junction 31 of the M62 in a logistics hub. Poundworld’s neighbours will include Asda, DHL, HSBC, Royal Mail and TK Maxx.
Founder and CEO Chris Edwards said: ”Our new distribution centre will improve efficiency and allow us to offer our customers even more amazing products, increasing the variety in our stores.
“It’s an exciting step forward for us and we look forward to providing further jobs in the Yorkshire region and in other areas across the UK that will be home to new Poundworld stores”.
The new warehouse will serve Poundworld’s network of over 280 stores nationwide including its new multi-price fascia, Bargain Buys.
The group said it will help it to meet the increasing demand for value variety retailers.
Poundworld has previously said the 200 new stores, which will open over the next three years, will create over 3,700 jobs.
The group was founded in 1974 on a Wakefield market stall and it now employs over 6,000 staff.
As a leading player in the fast-growing UK value sector, the company serves over two million customers a week.