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<\/a><\/p>\nARNCLIFFE, NSW\u00a0\u2013 More than 70 hectares of vacant green space beside Sydney Airport is slated for transformation into a multi-billion-dollar AI data centre, logistics, and commercial mega-complex, reflecting Australians\u2019 increasing reliance on cloud computing and digital infrastructure.<\/p>\n
The ambitious proposal, currently placed on public exhibition through the NSW Planning Portal, anchors the redevelopment of the former Kogarah Golf Club site in Arncliffe.\u00a0Estimated to cost between $2.9 billion and $3.5 billion, the project will feature a sprawling AI data centre as its core backbone.\u00a0Beyond digital infrastructure, the broader precinct plans call for logistics facilities, commercial office spaces, retail and hospitality options, an 18-storey hotel, and nearly 1,600 parking spaces.<\/p>\n
The transition comes following Kogarah Golf Club\u2019s sale of its land to John Boyd Properties in March 2025 for over $50 million.\u00a0Proceeds from the transaction funded the club\u2019s relocation to the newly established Oak Point Golf Club at Lansvale along the Georges River.<\/p>\n
For members of the historic club\u2014founded in 1928\u2014the move marked the end of a long, frustrating era. Golfers had spent nine years playing on a truncated 15-hole course after a portion of the land was acquired for the WestConnex project in 2016.<\/p>\n
\u201cIt\u2019s a pretty devastating time for all of the members. Everybody is affected by this,\u201d long-time Kogarah Golf Club general manager Tony Rodgers told\u00a0Australian Golf Digest\u00a0in 2025. \u201cGovernment departments have no commercial imperative. They do what\u2019s important for the government of the day. When you\u2019re needing something off them, they\u2019ve got many other people to satisfy. You just get in line and interests change over time.\u201d<\/p>\n
Public Parklands vs. Power Demands<\/p>\n
While five hectares of the development are allocated for hotels, offices, serviced apartments, shops, and restaurants, another 14 hectares will be dedicated to Bayside Council.\u00a0This land will form a public park alongside new walking and cycling paths along the Cooks River.<\/p>\n
Despite the inclusion of public open space, the project has sparked opposition among local residents who argue the land should remain open green space rather than host an energy-intensive industrial data facility.<\/p>\n
Australia currently holds the world\u2019s second-largest pipeline of AI data centres under construction, trailing only the United States. Toby Walsh, Laureate Fellow and Scientia Professor of Artificial Intelligence at UNSW, noted that stable political and economic conditions have made Australia a prime magnet for developers.<\/p>\n
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\u201cThe spend [on the centres] is, according to ABS quarterly figures, keeping our economy afloat and stopping us going into recession,\u201d Professor Walsh said. \u201cBut it comes with some costs; huge amounts of energy. Every time you ask ChatGPT a question, stream a movie on Netflix, access your online bank account, or buy some goods on Amazon, a computer in some anonymous data centre, typically on the edge of town, spins up and does that computing.\u201d<\/p>\n
Professor Walsh warned that facilities of this scale create localized environmental challenges, highlighting that NSW\u2019s largest existing facility- the CDC Data Centres complex in Marsden Park\u2014will consume roughly 5 per cent of all electricity in Australia.<\/p>\n
\u201cThat electricity causes a lot of heat, which means many data centres also use lots of cooling water, and the chillers for that cooling are noisy, which is problematic when data centres are in urban areas,\u201d Walsh added.<\/p>\n
Grid Pressure and Energy Concerns<\/p>\n