Community protest forces scrapping of Sydney AI data centre plan

What Happened

The proposed AI data centre on the banks of the Cooks River at Arncliffe has been removed from Stockland and John Boyd Properties' redevelopment plan. The 18.3‑hectare Kogarah Golf Club site was to become a $3.5 billion logistics precinct that included a four‑storey, 25,400‑square‑metre data centre. After months of protests, the developers confirmed the data centre will not be built, focusing instead on warehouses, retail, hospitality and a one‑kilometre public foreshore link.

Reaction

Stop the Cooks River AI Project (SCRAP) organiser Paddy Gibson called the decision “a victory for people power”. He warned the centre would have threatened endangered plants, local wildlife and could have increased water contamination and power use. Bayside Greens councillor Peter Strong said the withdrawal was “very heartening” and urged the state to give councils a veto on such projects. Stockland’s spokesperson said the amended masterplan still delivers a world‑class logistics hub, the new 14‑hectare Pemulwuy Park, road upgrades and better active‑transport links. Canterbury Labor MP Sophie Cotsis welcomed the revised plan and highlighted the government’s Cooks River Consolidation Project to restore the river banks.

Context

The cancellation follows similar community wins that saw AirTrunk’s Lane Cove data centre and Goodman Group’s $1.2 billion plan dropped. State‑wide, the Minns government’s new data‑centre policy framework and a pending parliamentary inquiry report aim to tighten fast‑track approvals, reflecting growing tension between AI‑driven economic ambitions and local environmental concerns.