Shares in Harworth Group PLC (LSE: HWG) experienced a rise of over 2% on Monday following the announcement that the Leeds local planning committee has resolved to grant planning consent for a hyperscale data centre and industrial & logistics (I&L) space at Skelton Grange, Leeds.
The approval pertains to a planning application submitted by MSFT MCIO Limited (‘Microsoft’).
The approved application encompasses full planning permission for a data centre campus, incorporating associated infrastructure. Outline planning permission has also been granted for a warehouse building.
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The data centre proposals comprise approximately 500,000 sq ft across three data centre halls and auxiliary buildings, situated on Plots 1 and 2. Harworth’s adjoining 16-acre plot will accommodate approximately 160,000 sq ft of I&L space, including electric vehicle (EV) charging facilities.
Harworth has already completed the first phase of the transaction involving Plot 1, a 27-acre site, with Microsoft in June 2024, realizing a gross consideration of £51.2m. The company is actively engaged in site remediation and enabling works on behalf of Microsoft. The second phase, Plot 2, comprises 21 acres. Upon completion of the sale to Microsoft, Harworth is set to receive a further £53.2m.
Lynda Shillaw, Chief Executive of Harworth, emphasized the significance of the development. “Obtaining the resolution to grant planning consent is demonstrable progress towards the completion of the Plot 2 sale and reflects our close and effective collaboration with Microsoft.” Shillaw highlighted the broader economic impact of the project.
Financial Implications and Future Outlook
This transaction is expected to drive substantial value growth for Harworth Group, while also stimulating significant investment in the Leeds region. The Skelton Grange development is projected to catalyze approximately £4 billion of inward investment upon completion, bolstering economic growth in the area.
Harworth’s strategic positioning in powered land further enhances its growth prospects. The company possesses a substantial portfolio of powered land, including the 16 acres adjoining the Skelton Grange site and the adjacent Gateway 45 site, providing ample capacity for future development.
Beyond Skelton Grange, Harworth’s powered land portfolio boasts an additional 0.8GW of power connections. This positions the company favorably to capitalize on increasing demand from data centre and other power-intensive sectors, potentially unlocking further upside opportunities, delivering strong group level value gains and attractive shareholder returns.
Investors should note that Harworth Group will announce a Trading Update for Q1-2026 at its AGM on Monday, 18 May 2026.
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