Microsoft Clears Key Hurdle for Sydney Data Centre Amid Rising Development Challenges
Microsoft has secured approval from the New South Wales government for a A$1.3 billion ($901.9 million) data centre in western Sydney, following Goodman Group’s withdrawal of a similar project due to local opposition. The Honeman Close Data Centre in Huntingwood will feature 40 data halls across five floors, with a 96 megawatt IT load. Despite minimal public objection, the project faced scrutiny over emissions and environmental impact, as the site includes critically endangered woodland.
The approval highlights the growing challenges in site selection for data centre developers in Sydney. Microsoft’s project drew only one public objection, compared to the 374 submissions against Goodman’s Project Mars, which was located closer to residential areas. The state government cited the data centre’s A$1.26 billion capital investment, 250 construction jobs, and 74 operational roles as key factors in its approval. However, Microsoft still needs federal environmental clearance before construction can begin.
Additional requirements include matching all electricity demand with renewable supply and capping total power consumption at 140 megawatts. The facility will rely on diesel generators and lithium-ion batteries for backup power, with cooling provided by rooftop evaporative towers. The project follows a three-year wait since its application was lodged in 2023, involving negotiations with Blacktown City Council over building concerns.
On the same day, Stockland received approval for a A$630.4 million data centre in Sydney’s Macquarie Park, designed for 34.3 megawatts of IT load. The project includes air quality modelling to address future residential developments and requires matching electricity demand with renewable supply, similar to Microsoft’s project.