Microsoft Greenlit for $1.26 Billion Sydney Data Center Amid Environmental Concerns

Microsoft has secured approval from the Labor government to build a $1.263 billion data center in Sydney. The 96-megawatt facility, located at 6 Honeman Close in Huntingwood, will span five stories and cover 39,297 square meters, featuring 40 halls. The project includes 46 diesel backup generators, lithium-ion battery systems, and diesel storage, with a total power demand of 140MBA. Backup generators will be limited to 187 hours annually, except during unplanned outages.

The approval process faced objections from Blacktown City Council, primarily due to concerns over the project’s impact on a conservation area and its scale. The council withdrew its objection after Microsoft revised the design and implemented mitigation measures, including biodiversity offsets. The project will remove 0.33 hectares of native vegetation, including 0.31 hectares of critically endangered Cumberland Plain Woodland. Microsoft must purchase ecosystem and species credits or contribute to the Biodiversity Conservation Fund before starting construction.

The data center is part of Microsoft’s broader $25 billion investment in Australian digital infrastructure, aimed at expanding cloud and AI capacity by over 140 percent by the end of 2029. The project is expected to create up to 250 construction jobs and 74 operational roles. Microsoft is also seeking federal approval under the Environment Protection and Biodiversity Conservation Act for the facility.