The German-owned grocery chain confirmed on Monday that it has purchased a 38 acre site in Gildersome, near Leeds, to be used as a regional distribution centre.
It represents Lidl’s seventeenth in Great Britain, and is set to be approximately 60,000 square metres in size.
Ingo Fischer, Lidl UK’s head of expansion and development, said: “As we continue to open new stores and serve more customers across the country, it’s important that we also continue to build foundations for the future.
“This latest investment joins a long line of Lidl warehouses set to open over the next seven years, which are all vital in supporting our growth.”
The Yorkshire site will follow the construction of new warehouses in Doncaster, Bolton, Peterborough and Luton as Lidl ramps up expansion.
Lidl said the new warehouse is part of wider expansion plans that will see it invest £1.45 billion in its national operations between 2017 and 2018.
The German discounter’s expansion will help solidify its standing as one of the UK’s fastest-growing supermarket, increasing the pressure on Britain’s Big Four - Tesco, Sainsbury’s, Asda and Morrisons.
Alongside national peer Aldi, the two retailers now account for almost £1 in every £8 spent in Britain’s supermarkets, up from £1 in £25 a decade ago.