Software king of the world Microsoft has acquired a 48-acre plot of land at Skelton Grange and wants to build a new hyperscale data centre on it.
The £106.6 million deal, announced by real estate group Harworth, will be Vole’s second regional data centre project in the area.
The investment in Yorkshire aligns with Microsoft’s global strategy of expanding its data centre footprint to support AI’s ever-growing demands and overall business operations. The company plans to invest billions of dollars in data centres worldwide to meet this growing need.
Microsoft’s land purchase at Skelton Grange consists of two adjacent plots.
The first, spanning 27 acres, will be acquired by the end of 2024 for £52.9 million. The second, encompassing 21 acres is slated for acquisition in the first half of 2026 for £53.2 million.
Harworth, a property developer specialising in regenerating brownfield locations, acquired the former Skelton Grange power station site in 2014. It has secured planning permission for over 1 million square feet of industrial and logistics space on the property.
Microsoft’s data centre isn’t the only development planned for Skelton Grange. Harworth Group envisions the site becoming a hub for sustainable energy solutions, potentially including a battery energy storage system (BESS) and an energy-from-waste facility.
Additionally, the company plans to return roughly 28 acres of the land to its natural state and implement improved green travel infrastructure.
Harworth highlights the project’s potential economic impact, estimating over £4 billion of inward investment and a significant boost to the local economy.
Harworth Group CEO Lynda Shillaw said: “Harworth has successfully completed a number of significant transactions that create value for our shareholders but this sale at Skelton Grange is the Group’s largest to date and is yet another exemplary case study that demonstrates the successful regeneration of brownfield land.”
“This transaction further builds our expertise to include data centres and evidences the growing spectrum of industries that continue to be attracted to the schemes that Harworth brings to the serviced land market.”
Microsoft’s deal not only strengthens its presence in the UK but also positions Yorkshire as a key player in the country’s digital landscape.
Earlier this year, plans were confirmed for another Yorkshire data centre on the site of a decommissioned nuclear power station in Eggborough.
Late last year, Microsoft announced a £2.5 billion commitment to AI data centre development across the country, including expansions of existing facilities in London and Cardiff.
