Leeds City Council in the UK has approved telecom company aql's plan to build a £43m datacentre which will be built on city's South Bank.
aql will work with Leeds and Partners for the project and construction on the data centre will commence in early 2013.
The facility known as DC4 will act as hub of international networks as aql is planning to roll out high speed broadband in Leeds.
The 120,000ft2 building will house computer systems and associated components such as telecommunications and storage systems for aql's public and private sector clients.
Six-storey building will be designed by local architectural practice Garnett Netherwood Architects.
The proposed data centre will be built on a part of a 3.14ha in Hunslet, formerly the location of Leeds' Yorkshire Chemicals plant and it will be able to house 2440 server racks capable of serving the entire region.
aql chief executive Dr Adam Beaumont said the company has decided to build DC4 whilst DC3 is completing.
"DC4 is on a completely different scale; 2440 racks will provide enough space for many of the larger Internet Service Providers to establish a firm and competitive presence in Leeds," Beaumont said
"We're on track to fill our existing data storage facilities by mid 2013, so the new DC4 site will allow expansion room to support the data growth from the IT, media and mobile sectors - including the huge demands which 4G will place on the region's infrastructure.
"Businesses in Leeds across a wide variety of sectors, from retail and fashion to medical technology and bio informatics, can utilise faster more reliable connections that are independent and protected of any problems in London."
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