Sydney’s Cooks River AI Data Centre Project Cancelled Following Strong Community Opposition — Sydney Auction Clearance Rate at 48%

Weekly Market Focus

A major AI data centre proposed along Sydney’s Cooks River has been cancelled. Developer Stockland had planned to redevelop Kogarah Golf Course into a large logistics and technology precinct, including a four-storey data centre covering approximately 25,400 square metres. However, the data centre has been removed from the latest revised plans. Stockland said the decision was made to prioritise the logistics precinct, although the proposal had faced sustained opposition from the local community.

The development attracted significant public opposition. Of the 665 submissions received by the NSW planning authorities, 593 opposed the proposal, while only three supported it. Bayside Council also raised concerns about building height and scale, overshadowing of Pemulwuy Park and the protection of nearby Moreton Bay fig trees. More broadly, AI data centres are attracting growing scrutiny over their electricity and water consumption, as well as potential low-frequency noise from cooling systems.

The Cooks River proposal is not an isolated case. In September, Goodman Group cancelled a proposed AUD 1.2 billion data centre in Lane Cove, while another 140-megawatt project has recently been withdrawn. Meanwhile, the NSW Government has supported at least 15 data centre developments worth approximately AUD 51.89 billion, with more than 60 facilities operating or under construction across the state. A recent NSW parliamentary inquiry recommended that future large-scale data centres be concentrated in dedicated precincts with shared energy and water infrastructure, rather than being developed individually near residential communities.

Last Week’s Auction Results

Sydney: A total of 964 properties were taken to auction, with results reported for 571 properties. Of these, 278 were sold, resulting in a 49% clearance rate. The total auction value reached AUD 208,575,768, with a median sale price of AUD 1,580,000.

Melbourne: A total of 629 properties were taken to auction, with results reported for 416 properties. Of these, 246 were sold, resulting in a 59% clearance rate. The total auction value reached AUD 184,182,453, with a median sale price of AUD 940,000.