Microsoft to build major data centre at former Leeds power station after unanimous approval

Microsoft giving planning permission to build data centre complex in Leeds.

Technology firm Microsoft is set to build a data centre complex at a Leeds former power station site after plans were agreed with the council.

Technology firm Microsoft is set to build a data centre complex at a former power station site after plans were agreed with the council.placeholder image
Technology firm Microsoft is set to build a data centre complex at a former power station site after plans were agreed with the council. | AFP via Getty Images

The former Skelton Grange site, in Stourton, will be redeveloped after planning permission was granted.

A data centre housing computer servers will be built, along with a warehouse with up to 15,000 square-metres of floor space.

Power connections, back-up generators and cooling chimneys will be installed as part of the project.

Councillors on the city’s North and East plans panel unanimously approved the scheme at a meeting this week.

A report to the meeting said: “Data centres host and support the digital infrastructure that underpins modern life, from patient records and e-mails to product data and financial systems.”

Data centres were officially designated as critical national infrastructure by the government in 2024, “putting data centres on an equal footing as water, energy and emergency services systems.”

Full planning permission was given for three data centre buildings at the site near an existing Amazon warehouse.

Outline permission, which gives consent in principle, was given for the Microsoft warehouse. Further details will be agreed as part of a reserved matters application.

Council planning officers recommended that the scheme, near Leeds City Centre and the M1 motorway, was approved.

Planning conditions include an employment and skills plan to provide jobs, apprenticeships and work experience opportunities.

Microsoft submitted early-stage plans in September 2024 as talks began with the council.

Ward councillors and people living nearby were consulted as part of pre-application discussions.

A dedicated web page set up for the Leeds project said: “Local businesses, government, hospitals and schools rely on data centres every day to deliver your goods and services.”

The panel’s decision means the application is delegated to the city’s chief planning officer for approval.

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