Harworth Group has entered into advanced negotiations with several parties for the sale of a second site in its portfolio that could house a hyperscale data centre.
The business, which previously completed the £106.6m sale of land at Skelton Grange in Leeds to Microsoft for a 500,000 sq ft data centre, has identified a site that benefits from planning consent and power connections, and “has the potential to deliver total value gains which would be ahead of the group’s first hyperscale data centre transaction”.
In a trading update for the six months ended 30 June 2026, Harworth Group said there are further potential hyperscale data centre opportunities within the group’s current portfolio, as well as smaller-scale digital infrastructure projects across its sites, including colocation facilities and edge providers.
Lynda Shillaw, chief executive of Harworth, said: “Harworth specialises in unlocking land at scale, with planning and power secured, and this is key to capturing high-returning development opportunities across the data centre and advanced manufacturing sectors. Our second data centre opportunity that we are highlighting today underlines Harworth’s position as one of the most significant regional players in the rollout of the UK’s digital infrastructure, working with some of the largest operators in the industry.
“In addition to these opportunities, we have seen strong momentum across our sales and lettings pipeline during the first half and into the second, including the first letting at our 1.1m sq ft Chatterley Park site, to an advanced manufacturer, and a further letting to a national logistics operator at our well-established Gateway 36 development.
“With our unique skillset, extensive land bank and 0.8GW of power connections across our portfolio either conditionally secured or in the pipeline, we are well positioned to accelerate our reallocation of capital to powered land and industrial growth sectors. This in turn will create a simpler, higher-returning platform to deliver sustainable future growth.”
Harworth Group also announced it has signed an agreement with a logistics operator, which will see Harworth develop a 30,700 sq ft facility at Gateway 36, Barnsley, and lease it to the occupier on a 20-year term.
The unit will form the next part of Phase 2 of the development, which has already seen the delivery of 110,000 sq ft of space, comprising distribution facilities for Dunelm, Lucy & Yak and BOXT.
The remaining units in Phase 2 are available to occupiers on a build-to-suit basis. The two largest remaining parcels at the site, Units 4 and 7, have reserved matters planning consent for 132,000 sq ft and 155,000 sq ft respectively.
Jonathan Haigh, chief investment officer at Harworth, said: “Gateway 36 has established itself as a major hub for distribution and logistics in Yorkshire, with a wide range of occupiers on site. This latest transaction, which will see us develop and let a unit to a key logistics operator, is a strong endorsement of the site’s excellent transport connectivity, with direct access to Junction 36 of the M1 motorway. We continue to see strong interest in the remaining land parcels at Gateway 36 and look forward to working with partners to delivering further units on a build-to-suit basis.”
