Developer Stockland has withdrawn plans to construct an artificial intelligence (AI) data center on the former Kogarah Golf Course site adjacent to Sydney's Cooks River. The decision follows sustained community opposition and protests against the project, which opponents argued would exacerbate environmental concerns along one of the state's most polluted waterways.
The proposed development was part of a larger logistics and technology precinct and included a four-story, 25,400-square-meter data center. Critics, organized under the banner 'Stop the Cooks River AI Project' (SCRAP), voiced concerns that the facility would worsen river contamination, negatively impact the local environment, and place additional strain on drinking water supplies, as data centers are known for their high water consumption for cooling.
"This is an important victory for people power," stated Paddy Gibson, a SCRAP organizer. "Stockland's back down serves as yet another warning to political leaders at the federal and state level that are rolling out the red carpet for US tech bros."
Stockland confirmed the site will now be developed into a logistics hub without the data center component. A spokesperson for Stockland stated, "The site is on the doorstep of Sydney Airport and in close proximity to Port Botany and major transport infrastructure, making it uniquely suited for a logistics hub and has potential for mixed uses, like retail and hospitality." The amended plan includes a public foreshore link along the Cooks River and the creation of Pemulwuy Park.
This development follows a similar incident in September, where Goodman Group scrapped its $1.2 billion 'Project Mars' data center in Lane Cove West, citing changes in the regulatory environment and strong local resistance. Data centers are a growing industry in Australia, with reports indicating a significant increase in both operational and proposed facilities. A Climate Council report highlighted that Australia had approximately 165 data centers as of August 2026, with at least 225 more proposed, more than doubling the previous year's numbers. Projections suggest that the electricity and clean water consumption by data centers in Australia could more than triple by 2030.
Stockland has identified seven other sites for potential data center development, including expansions and new projects in Macquarie Park, Wetherill Park, and Kemps Creek in Sydney, as well as three sites in Melbourne's west. SCRAP and a newly formed coalition of local groups are planning a rally in Parramatta on December 5 to demand a moratorium on all new AI data centers.
