A consortium has announced it is going ahead with a planned £43m data center.

Telecoms firm aql are working with Leeds and Partners  on the site which they hope could attract more major players in the industry to join existing names such as Cogent, SSE Telecom, Level (3), Janet and Fujitsu.

The site is known as DC4.

Dr Adam Beaumont, chief executive of aql, said that until the last couple of years, internet service providers have had to direct Leeds internet traffic via London.

But this has now changed - due to operators plugging into a hub in one of aql's three existing city sites DC1, 2 and 3; Leeds can now be independent of technical problems in the capital, creating a base that would keep traffic local, faster and more reliable.

"aql's city centre DC2 facility is the home IXLeeds - the only mutual not-for-profit internet exchange outside of London whose aim is to improve connectivity between operators for the good of the region," he said.

"This exchange, formed 2 years ago, provides a hub which allows regional operators to exchange traffic via the most optimum routes - this not only allows faster access speeds, but also increases the quality of the connectivity, which is important for services such as video conferencing and webinars - an important part of e-learning.

"We're on track to fill our existing sites 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 mobile will place on the regions infrastructure."

Lurene Joseph, Leeds and Partners chief executive, said: "The data centre anchors the region's digital sector, sending the strong message to national and international investors that they can have confidence in our 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."

The planning for the major development on part of the former Yorkshire Chemicals land in Hunslet was approved today by Leeds City Council.

The facility is designed in collaboration with local architects, Garnett Netherwood, to sit within a larger scheme by Yorkshire Design Group where the datacentre will share not only connectivity, but also heat with surrounding businesses and residences.

The centre comprises two six storey buildings totalling 120,000 square feet of space, and further allows aql to support huge data rates which will catalyse the growth of digital businesses in Leeds and supports the city's long term vision to be a world leader in the sector.

It will be connected to aql's existing city sites (DC1, 2 and 3) by a private fibre loop.

The surrounding area is a mixture of uses including residential, offices and retail, at Brewery Wharf, Indigo Blu, New Dock, Leeds City Office Park and Crown Point Retail Park.