Microsoft to Transform Former Power Station into Hyperscale Data Centre with £106.6M Investment

Microsoft has announced plans to establish a hyperscale data center in Leeds, UK, following its acquisition of a 162-acre site from Harworth Group for approximately £106.6m ($134m). Initially, the site served as a power station. Harworth Group purchased the property in 2014 for £3m. Microsoft intends to use the facility for cloud computing and artificial intelligence (AI) operations, as data use grows exponentially and puts increased demand on data center companies.

Hyperscale data centers are expansive facilities built by companies with enormous data processing and storage requirements. These businesses may earn income from the applications or websites supported by their equipment or offer technology management services to third parties. Additionally, they operate as cloud service providers, assisting in the consultation, design, development, and management of software, data, and applications hosted by one or multiple hyperscalers.

Microsoft Azure, Microsoft’s cloud computing services division, ranks second globally among hyperscale cloud providers. The company aims to allocate substantial investments to its data centers worldwide to support AI growth and extend operations internationally. The construction in Leeds is expected to be completed in 2026, with the sale proceeds from the transaction reinvested into Harworth Group’s development program.

Lynda Shillaw, Harworth Group’s CEO, commented on the sale, stating that it was the company’s largest transaction to date and showcased its successful brownfield land regeneration. Shillaw also highlighted the growing diversity of industries drawn to Harworth Group’s development projects.

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