Microsoft to Develop ‘Hyperscale’ Data Center Near Leeds, in The UK

Microsoft is investing in a new hyperscale data center at the former Skelton Grange power station near Leeds, UK. The £2.5 billion project aims to expand AI data center capabilities and bring over 20,000 advanced GPUs to the UK by 2026. This investment is part of Microsoft’s largest in the UK, with plans for additional data centers in London, Newport, and Eggborough, driving over £4 billion in investment and promoting innovation, sustainability, and economic growth.

Introduction

Microsoft has acquired a 48-acre site at the former Skelton Grange power station near Leeds to construct a new hyperscale data center, significantly ramping up its investment in the UK.

Investment Details

Over the next three years, Microsoft plans to invest £2.5 billion in expanding its AI data center infrastructure, bringing over 20,000 advanced graphics processing units (GPUs) to the UK by 2026. This represents the largest investment Microsoft has made in its 40-year history in the UK. Additional projects are slated for locations in London, Newport, and Eggborough.

Project Competitions and Constructions

Bouygues and McLaren are competing for the Newport project at the former Quinn Radiator Factory, known as Imperial Park. Meanwhile, Mace is constructing another data center at Park Royal in North London, with work having commenced last summer. The third project at the former Eggborough power station in North Yorkshire is expected to seek planning approval soon, with construction set to begin in 2027.

«The sale of the two land parcels demonstrated the successful regeneration of brownfield areas.»

Lynda Shillaw, The Microsoft’s Property Director

Skelton Grange Site

The Skelton Grange site, sold by Harworth Group for £107 million, has been remediated and has planning permission for a 1.1 million sq ft industrial and logistics hub. This may enable the Skelton Grange project to progress more quickly than the one at Eggborough. The site’s strategic location and readiness are key advantages.

Development and Economic Impact

Once fully developed, Skelton Grange is expected to provide:

• 250,000 sq ft of Grade A industrial and logistics space
• A hyperscale data center
• A 100MW Battery Energy Storage System
• An Energy from Waste facility

Additionally, 28 acres of land will be returned to natural habitat, along with enhanced green travel infrastructure, representing over £4 billion of inward investment, significantly boosting the local economy. Harworth stated that the Skelton Grange project exemplifies its growth strategy, focusing on developing next-generation industrial and logistics sites along with complementary energy infrastructure.

Community and Government Support

Tracy Brabin, Mayor of West Yorkshire, remarked, “In West Yorkshire, we’re building the transport infrastructure, talent pipelines, and thriving ecosystem needed to create jobs and growth. This new investment from Microsoft is a major vote of confidence in our plans, and I look forward to working with them and Leeds City Council to build a stronger, brighter region.”

Environmental and Technological Advancements

The new hyperscale data center will feature cutting-edge technology and sustainable practices. The integration of a 100MW Battery Energy Storage System and an Energy from Waste facility highlights Microsoft’s commitment to environmental sustainability. Moreover, the project aims to create thousands of jobs during construction and operation, contributing to the local community’s economic resilience.

Future Prospects

Microsoft’s extensive investment underscores its confidence in the UK’s potential as a tech hub. The developments in Skelton Grange, London, Newport, and Eggborough are part of a broader strategy to enhance the country’s digital infrastructure. This will likely attract further investments and technology partnerships, reinforcing the UK’s position in the global technology landscape.

Conclusion

Microsoft’s ambitious expansion in the UK through the development of the Skelton Grange hyperscale data center represents a transformative step in the nation’s digital and economic landscape. With substantial investments, advanced technology, and a strong focus on sustainability and community impact, this project is poised to make a lasting positive impact. The collaboration between Microsoft, local authorities, and the community will foster innovation, economic growth, and environmental stewardship, setting a benchmark for future developments in the tech industry.