Harworth boss praises firm’s collaboration with Microsoft as major Leeds data centre given green light
The chief exec of Yorkshire-based Harworth Group has praised collaboration efforts between the company and tech giant Microsoft after Leeds City Council gave the green light to a major data centre project.
Microsoft is set to build a data centre complex at a former power station site in Leeds, after planning permission for the scheme was granted late last week.
The scheme will be located at the former Skelton Grange site, in Stourton.
Land regeneration specialist Harworth is currently delivering site remediation and enabling works on the site on behalf of Microsoft.
Speaking on the scheme, Lynda Shillaw, chief executive of Harworth, said: "Obtaining the resolution to grant planning consent is demonstrable progress towards the completion of the Plot 2 sale and reflects our close and effective collaboration with Microsoft.
“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.”
The planning application requested permission for a data centre campus and associated infrastructure, as well as outline planning permission for a warehouse building.
The proposals comprise around 500,000 sq feet across three data centre halls and auxiliary buildings, which are set to be situated on two plots, and around 160,000 square feet of industrial and logistics space, as well as EV charging, on Harworth's 16-acre adjoining plot.
Harworth completed the first phase of the project with Microsoft in June 2024, comprising 27 acres for a gross consideration of £51.2m
The second phase comprises 21 acres, where Harworth is also delivering enabling works.
On completion of sale to Microsoft Harworth is set to receive a further £53.2m.
Ms Shillaw added that Harworth was “well positioned” to capture further demand from data centre schemes.
The Leeds North and East plans panel approved the scheme on Thursday, with the application now delegated to the city’s chief planning officer for approval.
A report to the Thursday meeting stated: “Data centres host and support the digital infrastructure that underpins modern life, from patient records and e-mails to product data and financial systems.”
The latest announcement comes after Harworth Group last month told investors that its data centre and power-enabled land platform was gaining momentum.
Ms Shillaw said in a statement issued alongside the company’s full-year results: “Harworth is at the intersection of some of the UK’s most powerful trends, including data, advanced technologies, reindustrialisation and clean growth.”
Speaking on the firm’s results, she added: "I am pleased with the performance of our teams and our operational execution throughout 2025, positioning the portfolio to realise future upside potential and delivering a total property return of 8.4 per cent, outperforming the MSCI UK Annual Property Index of 5.6 per cent.”