The golf course in the middle of Sydney’s data centre land rush

For almost a century, Kogarah Golf Club was a manicured stretch of green overlooking Sydney Airport and the Cooks River – a place of fairways, birdlife and weekend competition.

Now, barely a year after the club’s closure, the 70-hectare site has become the centre of a much larger contest, with plans for a major data centre development sparking fierce community resistance.

A $2.9 billion development plan for the site by Stockland and John Boyd Properties would transform the land into one of Sydney’s largest logistics and technology precincts, featuring warehouses, commercial facilities, hospitality uses and a four-storey, 25,400-square-metre data centre.

The proposal is among the largest projects before the NSW planning system. The masterplan outlines five proposed buildings with logistics facilities, commercial offices, retail and hospitality spaces, an 18-storey hotel and almost 1600 car parking spaces.

Economic modelling submitted with the proposal estimates the precinct could create up to 2890 ongoing jobs and contribute as much as $630 million each year to the NSW economy once operational.

In a statement, a Stockland spokeswoman said the site’s proximity to major transport infrastructure, including Sydney Airport and Port Botany, made it “uniquely suited to employment, logistics and trade-related activities”.

“[The project] will support the broader local community as well as Sydney’s economy,” she said.

Planning documents show the development would include buildings up to 70 metres high across three development blocks, exceeding the current 51-metre planning limit. The project would also deliver new public open space and improved access along the Cooks River foreshore.

But the proposal has sparked concern among environmental groups, residents and local government over the impact of placing a major data centre beside one of Sydney’s most heavily modified and polluted waterways.

The debate comes as data centres rapidly expand across Australia, driven by demand for cloud computing, digital services and artificial intelligence. The facilities require significant electricity supplies and can consume large volumes of water, depending on their cooling systems.

Planning documents for the Kogarah site state that the precinct would reduce reliance on drinking water through rainwater harvesting, recycled water and other non-potable supplies. Recycled water infrastructure would be used for irrigation, amenities and cooling where feasible.

However, the final cooling technology and long-term water requirements would be determined through future development applications.

Those assurances have not eased concerns from the River Canoe Club, which has paddled the Cooks River since 1955 and lodged a formal objection to the proposal.

Club representative Simon Bromage said members were concerned about construction impacts, future water demand, risks to mangroves and birdlife, and the overall scale of the development.

“The Cooks River gets a bad reputation because, historically, it hasn’t been treated very well, but it’s getting better every year because of the work of volunteers,” Bromage said.

“We want to make sure nature gets a chance, not just be overshadowed by a huge data centre.

“The scale of it – particularly the data centre and its use of water – is a concern. This development is on the banks of the river, but there’s virtually nothing in the proposal that puts the river first.”

The Cooks River Alliance has also raised concerns, saying it was not consulted during the project’s planning stages, despite representing councils across the catchment.

Alliance chair Clare Raffan said the development should be moved further from the river, with a wider rehabilitation corridor and dedicated funding for restoration and long-term management of the waterway.

Stockland has stressed that the application sets broad planning parameters only, and that any future data centre proposal would require separate environmental assessment examining water and energy use.

The dispute reflects a broader national debate about where Australia should build the infrastructure needed to support a rapidly growing digital economy.

In a submission to a current NSW parliamentary inquiry into data centres, the Urban Development Institute of Australia noted that Sydney Water had estimated demand could increase by 25 per cent over the next decade if all proposed data centres proceed.

Bayside Council, in a submission to the inquiry, also warned that data centres are consuming scarce industrial land near Sydney Airport and Port Botany that could otherwise support industries with higher employment potential.

However, industry group Data Centre Australia argues that the growth of digital infrastructure is essential to Australia’s economic future, warning that overseas restrictions on new developments including some in Singapore and Ireland have reduced investment.

The proposal comes just over a year since the 97-year-old Kogarah Golf Club merged with Liverpool Golf Club, with members relocating to Oak Point Golf Club in Sydney’s south-west.

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