Protesters have successfully shut down plans to build an AI data centre on the banks of Sydney’s most polluted waterway.
Developer Stockland on Saturday confirmed it had ditched plans to build a data centre for artificial intelligence services on the former site of Kogarah Golf Course.
The golf course sits on the Cooks River, which underwent an Australian-first microplastic assessment in March and was found to be the state’s most contaminated coastal waterway.
Amid community efforts to clean up litter along the river, Stockland proposed building one of Sydney’s largest logistics and technology precincts.
The plan included warehouses, commercial facilities, restaurants and a four-storey, 25,400-square-metre data centre.
Protesters under Stop the Cooks River AI Project (SCRAP) consistently held community demonstrations calling for the plans to be abandoned.
They claimed the centre risked worsening the river’s contamination, would worsen the local environment and strain drinking water supplies.
Data centres are widely criticised for using large amounts of drinking water. The water is used to cool systems that process large amounts of data to operate AI.
Stockland planned to build one of Sydney’s largest logistics and technology precincts (above) along the Cooks River
Stockland has seven other sites it has flagged for the massive buildings.
These include an expansion of its data centre at Macquarie Park in the city’s north, along with a new development there, and two sites in the city’s west at Wetherill Park and Kemps Creek.
The developer also has land in Melbourne, with three sites in the city’s west at Cherry Lane, Brooklyn, and the Melbourne Business Park where it intends to build the centres.
Paddy Gibson, a resident and SCRAP organiser, on Saturday confirmed the group’s efforts had paid off.
‘This is an important victory for people power,’ Mr Gibson said.
‘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.
‘Local communities will not accept their obscene plans to make Australia the second home for power and water guzzling AI data centres.’
The news comes after Goodman Group scrapped its plans for a $1.2billion ‘Project Mars’ data centre in Lane Cove West, in Sydney’s north, in September.
Plans for the data centre (above) were ditched last week following community protest
Goodman cited ‘changes in regulatory environment’ since it began planning and strong resistance from the local community to the centre’s construction.
Australia has sought to attract lucrative investment from AI development with 117 already operational in Sydney alone, according to the Data Centre Atlas.
A report by Climate Council found Australia had about 165 data centres as of August 2026 with at least 225 more proposed, more than double compared to last year.
The amount of electricity and clean water used by data centres in Australia is expected to more than triple by 2030, a report by Data Centres Australia stated.
Goodman anticipated it would need a constant supply of drinking water for cooling, with Project Mars requiring an estimated 1.4 million litres per day.
It is unclear how much water Stockland’s proposed data centre would have used.
Sydney Water previously indicated its existing water infrastructure would be limited in supporting Project Mars.
A Stockland spokesperson confirmed the site would instead be developed into a logistics hub without a data centre.
Local protesters were concerned the centre would worsen pollution in the Cooks River (above), already one of the state’s most polluted waterways
‘Stockland and John Boyd Properties are focused on the development of a world class logistics precinct which does not include a data centre as part of the amended Concept Masterplan,’ they said.
‘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 project will also deliver a one-kilometre public foreshore link along the Cooks River and the future delivery of the 14-hectare Pemulwuy Park, as well as local road upgrades and improved active transport connections.’
Mr Gibson said SCRAP would continue action against other planned data centres around Sydney.
‘We are also part of a new coalition of local groups campaigning against all AI data centres, that will unite on December 5 for a major rally in Parramatta demanding an immediate moratorium on all new AI data centres,’ he said.
‘We are only just getting warmed up – the Albanese and Minns’ governments need to act immediately to impose a moratorium or face the same collapse in political support seen in the US midterm elections, where pro-data centre candidates were severely punished.’
READ MORE: AI data centres could trigger blackouts and drive up bills
Join the discussion
Should local communities have the power to block major tech projects if they fear environmental impacts?
