Microsoft won New South Wales government approval for an A$1.3 billion ($901.9 million) data centre in western Sydney on 1 October. The five-storey facility in Huntingwood will deliver 96 megawatts of IT capacity across 40 data halls.

State planners signed off on the project three days after Goodman Group abandoned plans for an A$798 million facility on Sydney’s north shore following neighborhood protests. Industrial corridors and suburban fringes continue to drift apart as cloud infrastructure expands across Australia.

The development consent caps total power consumption at 140 megawatts. Before operations begin, state authorities require Microsoft to match all electricity demand with additional, firmed renewable supply. This power must come through power purchase agreements for generation within New South Wales.

First-year carbon dioxide equivalent emissions are projected at 1,326 kilotonnes, driven largely by operational electricity draw. Onsite backup systems include 46 diesel generators holding up to 1.5 million litres of fuel, alongside 158,763 kilograms of lithium-ion batteries. Cooling will rely on 36 rooftop evaporative cooling towers drawing approximately 3.9 megalitres of water daily.

Planning consent gives Microsoft no immediate path to break ground. The company must still secure federal environmental sign-off under the Environment Protection and Biodiversity Conservation Act.

Clearing the site requires removing 0.33 hectares of a conservation area containing critically endangered woodland and potential wildlife habitats. Construction will take 24 months once federal approvals land. It will generate 250 construction jobs and 74 permanent operational positions.

Securing the Huntingwood site required extensive negotiations with Blacktown City Council over building bulk, drainage, and landscaping before reaching a formal planning agreement in September 2025.

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