Microsoft Secures Approval for $902M Western Sydney Data Centre
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Microsoft won New South Wales government approval for an A$1.3 billion ($901.9 million) data centre in western Sydney on 1 October. The five-storey facility in Huntingwood will deliver 96 megawatts of IT capacity across 40 data halls.
State planners signed off on the project three days after Goodman Group abandoned plans for an A$798 million facility on Sydney’s north shore following neighborhood protests. Industrial corridors and suburban fringes continue to drift apart as cloud infrastructure expands across Australia.
Power Caps and Grid Conditions
The development consent caps total power consumption at 140 megawatts. Before operations begin, state authorities require Microsoft to match all electricity demand with additional, firmed renewable supply. This power must come through power purchase agreements for generation within New South Wales.
First-year carbon dioxide equivalent emissions are projected at 1,326 kilotonnes, driven largely by operational electricity draw. Onsite backup systems include 46 diesel generators holding up to 1.5 million litres of fuel, alongside 158,763 kilograms of lithium-ion batteries. Cooling will rely on 36 rooftop evaporative cooling towers drawing approximately 3.9 megalitres of water daily.
Federal Biodiversity Clearance
Planning consent gives Microsoft no immediate path to break ground. The company must still secure federal environmental sign-off under the Environment Protection and Biodiversity Conservation Act.
Clearing the site requires removing 0.33 hectares of a conservation area containing critically endangered woodland and potential wildlife habitats. Construction will take 24 months once federal approvals land. It will generate 250 construction jobs and 74 permanent operational positions.
“Cooling will rely on 36 rooftop evaporative cooling towers drawing approximately 3.9 megalitres of water daily.”
Site Selection Shifts West
Securing the Huntingwood site required extensive negotiations with Blacktown City Council over building bulk, drainage, and landscaping before reaching a formal planning agreement in September 2025. The proposal attracted only a single public objection. Residential properties sit 90 metres away.
Goodman faced a harsher reception at its proposed Project Mars site in Lane Cove West. Homes stood 20 metres away, with a primary school within 160 metres. That proposal drew 374 public submissions, with only nine in support, before Goodman withdrew it on 28 September.
The policy environment for large data centres had
evolved significantlysince planning started, Goodman head of planning Guy Smith told the planning department.
Hyperscalers and real estate developers in Sydney are concentrating capital in western industrial clusters to avoid urban friction. Huntingwood borders Eastern Creek, where Goodman has filed plans for a 500-megawatt, A$5 billion campus. Nearby in Minchinbury, Starwood, Doma, and Telstra InfraCo are building a 62-megawatt facility.
National Standards on the Horizon
Engineering consultancy Lehr Consultants International lodged Microsoft’s initial application in 2023 without naming the end user. The project ties into Microsoft’s October 2023 commitment to invest A$5 billion over two years to expand Australian cloud and computing infrastructure.
State planners also approved Stockland’s A$630.4 million Road 1 Data Centre in Macquarie Park on the same day, permitting a 34.3-megawatt IT load alongside future residential towers. Developers now face tighter rules. Victoria is proposing mandatory 150-metre buffer zones from homes, while the Australian federal government prepares national data centre legislation for introduction in early 2027.
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