The company said it had made a final investment decision to build the Hornsea 3 project, which will have a 2.9-gigawatt capacity to power more than 3.3 million UK homes.
The wind farm is expected to be completed around the end of 2027, creating up to 5,000 jobs during the construction phase.
It will add 1,200 permanent positions, "both directly and in the supply chain in the long operational phase," the company said.
It will be Orsted's third gigawatt project in the Hornsea area, which are operated out of Grimsby.
"Offshore wind is an extremely competitive global market, so we also welcome the attractive policy regime in the UK which has helped secure this investment," Orsted chief executive Mads Nipper said in a statement.
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