Over the next three years, Microsoft plans to spend £2.5bn on expanding its next-generation AI datacenter infrastructure, bringing more than 20,000 of the most advanced graphics processing units (GPUs) to the UK by 2026.

This represents the single largest investment in its 40-year history in the UK. Its other schemes are planned for sites in London,  Newport and Eggborough.

Bouygues and McLaren are bidding for the Newport scheme known as Imperial Park on the site of the former Quinn Radiator Factory.

Mace is building another at Park Royal in North London where work got underway last summer.

The third scheme at the former Eggborough power station in North Yorkshire is due to go for planning shortly with construction pencilled to start in 2027.

The latest site acquisition at Skelton Grange power station was sold by Harworth Group for £107m.

Harworth has remediated the site and secured planning permission for 1.1m sq ft industrial and logistics hub to the south east of Leeds city centre.

This may allow the scheme to advance more quickly than Eggborough.

Once the full planned development is complete, Skelton Grange is expected to provide 250,000 sq ft of Grade A industrial and logistics space, the hyperscale datacentre, a 100MW Battery Energy Storage System and an Energy from Waste facility.

Around 28 acres of land will also be returned to natural habitat alongside improved green travel infrastructure, which Harworth estimates will represent in excess of £4bn of inward investment providing a substantial boost to the local economy.

Harworth said the Skelton Grange scheme provided a template for its growth strategy going forward.

This will be focused on development of next generation of industrial and logistics sites alongside complementary energy infrastructure.

Tracy Brabin, Mayor of West Yorkshire, said: “Here in West Yorkshire, we’re building the transport infrastructure, talent pipelines and thriving ecosystem we need 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 with Leeds City Council to build a stronger, brighter region.”