The warehouse will employ 2,000 people at the site over the next three years.
The 437,000 square feet site will be operational within 12 months, allowing for a gradual ramp up with testing to meet the capacity required for peak trade in 2023, the online retailer said, and is located near the A38 with good airport links.
The AIM giant, which had trouble setting up new EU and US warehouses in 2019, currently operates three fulfilment centres in South Yorkshire, Berlin and Atlanta.
“This significant investment in infrastructure and large-scale job creation is a reflection of the confidence ASOS has in its future and the quality of the skills and talent available in this well-placed location,” chief executive Nick Beighton said in a release.
“When fully up and running in 2023, the site will support our ever-increasing customer demand and enable us to develop our offerings and delivery capabilities even further.”
Shares rose 3% to 5,258p on Friday afternoon.