Microsoft Hyperscale Data Centre on Power Station Site

Microsoft has purchased a site in Leeds, UK, from Harworth Group for £106.6m (US$134m), where it will build a hyperscale data centre. The Skelton Grange site was previously used as a power station. The Harworth Group, a land and property regeneration company, bought the 162 acre site in 2014, for £3m. 

Microsoft’s commitment to sustainability, cloud computing and AI

Data use is exploding, causing data centre companies to face increasing levels of pressure from customers to meet increased demand. With that, comes hyperscalers.

Hyperscale data centres are larger facilities built by companies with immense data processing and storage needs. These firms either make their income directly from the applications or websites its equipment supports, or sell technology management services to third parties.

They are also cloud service providers that work to consult, design, develop, build and manage software, data and applications provided by one or numerous hyperscalers.

Microsoft Azure is the cloud computing services arm of Microsoft and is the second largest hyperscale cloud provider globally. Microsoft plans to invest billions into its data centres to support the growth of AI and expanded operations across the world. 

In Leeds, the sale is expected to be completed in 2026. The Harworth Group said that following completion, the proceeds would be reinvested into its development programme.

“Since re-listing in 2015 Harworth has successfully completed a number of significant transactions that create value for our shareholders but this sale at Skelton Grange is the Group’s largest to date and is yet another exemplary case study that demonstrates the successful regeneration of brownfield land,” said Lynda Shillaw, Chief Executive, Harworth Group. “This transaction further builds our expertise to include data centres and evidences the growing spectrum of industries that continue to be attracted to the schemes that Harworth brings to the serviced land market.”

Microsoft is expanding across the world, from its base in Redmond in Washington, to Leeds to Johor, over in Malaysia. Eco World sold land in Johor to a local subsidiary of Microsoft, which will develop a data centre site there. Eco World is a Malaysian real estate firm which is spread across three key economic regions in the country, with development projects including townships, commercial developments, luxury apartments and green business parks. Johor, on Malaysia’s southern coast, is close to the Singaporean border. Johor’s growing data centre market is ready to accept overspill from its city-state neighbour.

Microsoft has committed to investing US$2.2bn in cloud computing and AI services in Malaysia, over the next four years. Eco World said that this sale would go towards the company's cash reserves, for new landbank acquisitions.

“The group believes that the presence of an internationally recognised technology leader choosing to set up a sizeable data centre here, will further drive demand for EBP VI’s other industrial products,” Eco World said in a statement.

Post-Pride, Microsoft remains a DE&I leader

In our Top 10: DE&I Leaders, we chose Patricia Rodríguez Henríquez, Data Centre Operations Manager at Microsoft, to feature on our list. Patricia sees the whole technology industry as one where diversity and inclusion can drastically improve ideas and efficiency. 

“This is an amazing industry where women have great opportunities and we are eager to see diversity improve in our teams,” said Patricia. “When you work with people from different nationalities and cultures, you realise that [prejudices are] still more perceptible.”
 

******

Make sure you check out the latest edition of Data Centre Magazine and also sign up to our global conference series - Tech & AI LIVE 2024

******

Data Centre Magazine is a BizClik brand