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BUSINESS · NOV 8, 2026

Stockland Scraps AI Data Center in $3.5 Billion Precinct

Stockland and John Boyd Properties removed an AI data center from their proposed Sydney logistics hub following intense community and political opposition.

Property developer Stockland and partner John Boyd Properties have removed plans for an AI data center from a proposed $3.5 billion logistics precinct at the former Kogarah Golf Club site in Sydney. The decision follows a campaign by the community group Stop the Cooks River AI Project and Bayside Greens councillor Peter Strong, who raised concerns regarding noise, energy and water consumption, and the ecological health of the Cooks River.

While the data center is no longer part of the amended Concept Masterplan, the developers intend to move forward with the broader logistics hub. The revised project may include retail and hospitality components, along with a one-kilometre public foreshore link. Stockland noted the site is uniquely suited for a logistics hub due to its proximity to Sydney Airport and Port Botany.

This reversal mirrors a wider trend across Australia, where infrastructure constraints and community backlash have disrupted similar projects from operators including AirTrunk, NEXTDC, and the Goodman Group. The shift occurs as the Government of New South Wales implements a data center policy framework intended to balance investment with household interests.


Reported across 3 outlets
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StocklandGovernment of New South Wales

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