A plot of land at Gonerby Moor measuring five-and-a-half acres has been bought by South Kesteven District Council.
The local authority is inviting businesses looking for industrial land to consider the area in Occupation Lane, near Downtown.
SKDC has commissioned Western Power to install a sub-station at a cost of £60,000 and will develop an access road, sewers and lagoon to enable purpose-built units to be built.
Corrine Garbett, strategic lead economic and regeneration, said the council had invested in the land because there was a demand locally for larger freehold premises.
She added: “Planning permission is in place and it is all systems go so we would now like to hear from interested investors looking to either locate to Grantham or to move to bigger premises in the area.”
Information: 01476 406080.