Barratt Redrow has signed a contract with the Welsh Government to deliver a net zero carbon housing development at Cosmeston Farm in the Vale of Glamorgan.
The scheme will see 576 new homes built to net zero standards using design and technology to cut emissions.
Cardiff University has been brought in to independently check the carbon performance of the homes.
Half of the homes will be affordable, including 219 for social rent.
The site will also provide a new primary school, open spaces and an active travel route.
The aim is to create a sustainable community.
Cabinet Secretary for Housing and Local Government Jayne Bryant, said: “This landmark development sets a new standard for sustainable housing not only in Wales but across the UK and beyond.
“This isn’t just about building homes – it’s about creating thriving communities and tackling the climate emergency head-on.
“Our net zero policy is driving real investment and real change in how we build the homes Wales desperately needs.”
Bryant added: “The agreement with Barratt Redrow represents a significant step-change that shows what’s possible when we put people and our planet first, and I’m particularly pleased with their commitment to delivering training and apprenticeships, helping to build skills and careers for the next generation.”
David Thomas, CEO at Barratt Redrow, said: “As one of the leading housebuilders in Wales we are proud to be working with the Welsh Government to build the largest net zero new community in the UK.
“It will be an exemplar development and a great place to live, with fantastic community facilities, a strong commitment to affordable housing, and cutting-edge sustainability credentials.
“Every highly energy efficient home will be heated by a ground source heat pump and powered by photovoltaic panels and batteries, cutting carbon and bills for future residents.”
The site disposal was managed by Savills.
Scott Caldwell, director of Cardiff development for Savills, said: “This commitment by Barratt Redrow, the largest PLC housebuilder in the UK, is believed to be the first of its kind at this scale in the UK.
“It represents a significant investment and harnesses a raft of industry expertise and knowledge to help demonstrate how delivery standards can be implemented at scale to support the Welsh Government’s journey towards net zero.
“Learning from the Cosmeston journey is expected to help inform how development can deliver to more stringent environmental standards into the future.”