Land regeneration and development firm Harworth Group (HWG) moved a step closer to building a data centre campus for tech giant Microsoft (MSFT). The site, at Skelton Grange in West Yorkshire, comprises around 500,000 quare feet in total.
Work in progress
Harworth announced that the Leeds local planning committee had passed a resultion to approve the scheme at Skelton Grange. The application asks for full planning permission for a data centre campus and associated infrastructure, and outline planning permission for a warehouse.
The site will house three data centre ‘halls’ and auxiliary buildings on two plots. It will also feature 160,000 square feet of industrial and logistics space and EV charging on Harworth’s adjoining 16-acre plot.
The firm completed the sale of the first plot to Microsoft in 2024, comprising 27 acres, for £51.2 million. Work continues on remediation there and on the second plot, comprising 21 acres, which will be worth £53.2 million on completion.
We would have expected today’s headline to light a fire under Harworth shares, which are down 28% this year. However, the devil is in the detail, as is often the case with planning applications.
Leeds City Council’s Plans Panel deferred a decision on approval and shunted it to the Chief Planning Officer. Their decision is ‘subject to conditions’ and rests on completion of an S106 agreement.
S106 is a legally-binding contract between the developer and the planning authority designed to mitigate a development’s impact on the local community. It often includes provisions for improved infrastructure, including education and health facilities, affordable housing and improvements to the environment.
The news brings the site one step closer to reality, therefore Harworth is ploughing ahead with the development. It isn’t the final seal of approval, however, so the market is right to be cautious for the time being.
Read the press release here: https://harworthgroup.com/investors/
