Cooks River data centre plans have been abandoned following sustained community opposition to the proposed artificial intelligence infrastructure in Sydney’s southern suburbs. The decision removes the controversial facility from the wider Kogarah Golf Club redevelopment.
However, Stockland and John Boyd Properties intend to advance the broader logistics precinct. The partners originally estimated the development’s end value at more than A$3.5 billion (approximately $2.42 billion). Importantly, this valuation covers the entire precinct, not the abandoned data center.
The development occupies the former Kogarah Golf Club site beside the Cooks River in Arncliffe. Its strategic position near Sydney Airport and Port Botany supports logistics, warehousing and commercial activities.
Cooks River Data Centre Withdrawal Reshapes Redevelopment Plans
Stockland confirmed that the revised concept masterplan would exclude the data center. The company said the partners would instead prioritize a world-class logistics precinct. A spokesperson explained that the location offers strategic advantages for logistics operations. These include proximity to Sydney Airport, Port Botany and major transport infrastructure. Furthermore, the partners see opportunities for complementary retail and hospitality developments.
The original redevelopment proposal covered approximately 18.3 hectares. Stockland and John Boyd Properties established a 50:50 joint venture in July 2025. Their masterplan proposed a multi-level logistics hub with approximately 340,000 square meters of floor space. The development would accommodate aviation-linked logistics, high-value freight and last-mile distribution operations.
The broader concept also included commercial facilities and public infrastructure. These components featured an active transport corridor along the Cooks River. Additionally, the development would facilitate a 14-hectare Pemulwuy Park. Bayside Council would deliver the public park.
The decision also comes as Australia advances other major data centre construction projects. In New South Wales, the proposed $2.8 billion Kurri Kurri Data Center is progressing through planning assessment. AirTrunk plans to develop the 550.5MW facility on a former aluminium smelter site near Kurri Kurri. Unlike the abandoned Cooks River proposal, the project has entered public exhibition, with developers highlighting employment opportunities and proposed community infrastructure benefits.
Cooks River Data Centre Opposition Drives Planning Changes
Community resistance intensified after developers introduced the data center as a potential alternative use. The proposed facility attracted criticism over electricity consumption, water demand, noise and environmental impacts. Residents also questioned its compatibility with surrounding residential neighborhoods.
The Stop the Cooks River AI Project (SCRAP) organized opposition against the proposal. The community campaign attracted hundreds of participants following its formation in August 2026. Organizers argued that energy-intensive computing infrastructure threatened the river’s recovering ecosystem.
Campaigners also highlighted endangered species and existing environmental rehabilitation efforts. They feared additional industrial activity could undermine improvements around the Cooks River. Moreover, residents raised concerns about backup generators, potential contamination and pressure on local infrastructure.
Bayside Greens councilor Peter Strong also opposed the data center. He questioned its electricity and water requirements alongside operational noise. Meanwhile, the New South Wales planning authority recorded substantial public opposition. Reporting on the planning submissions identified 593 objections against three submissions supporting the proposal.
The withdrawal therefore represents a significant change in the development’s proposed land uses. However, it does not terminate the wider redevelopment. Instead, the partners intend to progress the logistics precinct without the data center.
Cooks River Data Centre Exit Leaves Logistics Development Moving Forward
The revised masterplan is expected to retain important public infrastructure commitments. These include a one-kilometer public foreshore connection along the Cooks River. The partners also identified local road upgrades and improved active transport connections.
Furthermore, the project offers opportunities for employment and freight infrastructure. Stockland’s original development announcement anticipated approximately 340,000 square meters of logistics space. The precinct would support aviation-related supply chains and distribution activities.
Nevertheless, the broader development must continue through the relevant planning processes. The New South Wales Department of Planning, Housing and Infrastructure oversees the major project assessment. The planning authority has also raised concerns requiring further information and assessment.
The withdrawal comes amid increasing scrutiny of Australia’s data center expansion. Communities increasingly question the electricity, water and environmental implications of artificial intelligence infrastructure. Consequently, developers face growing pressure to demonstrate community benefits alongside infrastructure requirements.
For the Kogarah Golf Club redevelopment, removing the data center changes the project’s development direction. However, the logistics precinct still requires planning progress before construction can advance. The partners have not announced a revised construction commencement date following the decision.
Project fact sheet
Name: Kogarah Golf Club Redevelopment, also associated with the Cooks Cove precinct.
Location: Former Kogarah Golf Club, Arncliffe, southern Sydney, New South Wales, Australia.
Value: Approximately A$3.5 billion ($2.3 billion).
Site area: Approximately 18.3 hectares of rezoned land.
Development category: Logistics, warehousing, commercial and mixed-use development.
Original proposed data center: Four-storey artificial intelligence data center.
Proposed data center floor area: Approximately 25,400 square meters.
Revised development scope: Logistics precinct without the proposed data center.
Proposed public infrastructure: One-kilometer Cooks River foreshore connection.
Public Park: Future 14-hectare Pemulwuy Park.
Additional infrastructure: Local road upgrades and improved active transport connections.
Strategic advantages: Proximity to Sydney Airport, Port Botany and major transport infrastructure.
Current status: Data center removed from amended Concept Masterplan; wider logistics redevelopment remains under planning.
Project team
Developer and Development Partner: Stockland.
Joint Venture Partner: John Boyd Properties.
Planning Authority: New South Wales Department of Planning, Housing and Infrastructure.
Local Government Authority: Bayside Council.
Community and Environmental Advocacy: Stop the Cooks River AI Project (SCRAP).
Public Infrastructure Stakeholder: Bayside Council, including the proposed Pemulwuy Park delivery.
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