The supermarket chain bought the site in Clyst Honiton near Exeter airport in February from Sainsbury’s after the rival chain aborted its own plans for a depot.
It has submitted plans to East Devon District Council for a 50,000 square metre warehouse to support its burgeoning portfolio of stores in the south west, paving the way for 500 new jobs in the area.
Work on the scheme is expected to start this summer, with a view to having the warehouse up and running by September 2017.
The latest Kantar Worldpanel data shows Lidl grew sales by 17.7 per cent to £1.1bn in the 12 weeks to the end of March to take 4.4 per cent of the market.
It currently has nine distribution centres following previous announcements to open warehouses in Southampton and Wednesbury, making Devon its 12th when it opens.
Adrienne Howells, Lidl UK’s head of warehouse expansion, said: "It’s incredibly encouraging that our sales growth is consistently outperforming the market, but this requires a solid infrastructure that enables us to cope with growing customer demand.
"A new regional distribution centre in East Devon will help to alleviate pressure on our other warehouses which are currently servicing the region, and will support new stores that we hope to open across the South West in the coming years."