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The regional distribution centre at Houghton Regis near Luton is expected to service 150 stores and create up to 1,500 jobs, the company said.
The 1.2 million sq ft (111,000 sq metres), £300m site, includes solar panels which Lidl said could run the warehouse at certain times of the year.
All of its delivery fleet will be fuelled by biogas made from food waste.
The retailer said the warehouse was so large, it could “fit three of Lidl’s existing warehouses inside”.
It will be expected to move more than 9,400 pallets of goods each day, bound for its 150 stores.
Its existing distribution centres service approximately 60-80 stores.
The company said it would be the first Lidl GB warehouse to feature automation, “helping to store more goods and increase capacity at the distribution centre, which in turn is helping to create more jobs”.
Jeremy Hunt, Chancellor of the Exchequer, said: “It’s fantastic to see Lidl investing in the UK and creating thousands more well-paid jobs… businesses can be confident that investing in the UK is the right decision.”
