Data CentresHudson FarrMon 12 Oct 26
One Hurdle Left for Microsoft’s Western Sydney Data Centre Scheme
Microsoft has won state planning approval for a $1.26 billion, 96MW data centre at Huntingwood in Sydney’s west after the Blacktown City Council withdrew its objection.
The NSW Department of Planning, Housing and Infrastructure issued consent for the project at 6 Honeman Close this month.
The five-storey, 43.25m building will comprise 40 data halls with about 39,000sq m of floor space on industrial land in the Western Sydney Employment Area. The consent caps total power use at 140MW against a 96MW technology load.
Backup power includes 46 diesel generators with a combined 133.4MW capacity and up to 1.532 million litres of diesel storage.
The department estimated the project would support 250 full-time-equivalent construction jobs and 74 operational roles.
Aside from unplanned outages, the generators are allows to run no more than 187 hours a year, with one tested at a time and only on weekdays between 7am and 6pm.
They cannot feed power to the National Electricity Market, support load curtailment or run during planned outages.
Microsoft must notify neighbours if an unplanned outage lasts 30 minutes or more, and report to the department within 30 days of such an event.
The project will require about 0.33ha of native vegetation, including 0.31ha of critically endangered Cumberland Plain Woodland, to be cleared, reducing a conservation area from 1.11ha to 0.78 hectares.
The project is also being assessed under the Federal Environment Protection and Biodiversity Conservation Act. It is part of Microsoft’s $25-billion Australian investment announced last year.
The council initially objected over the reduction of the conservation area and the building’s bulk, scale and landscaping.
The department said Microsoft revised the design and landscaping, updated its biodiversity assessment and added noise and air quality measures, after which council dropped its objection.
Before clearing the site, Microsoft must retire 11 ecosystem credits and 24 species credits, or pay the equivalent to the Biodiversity Conservation into the fund.
The remaining 0.78ha must be protected in perpetuity by covenant. The department found no serious and irreversible impact on the woodland.
Emissions were the only issue raised in the project’s single public submission.
The department put first-year emissions at 1.3 million tonnes of carbon dioxide equivalent, mostly from electricity use.
Before operating, Microsoft must show all electricity demand is matched at all times by additional, firmed renewable supply, backed by agreements for NSW-based supply.
It must also report annually on power efficiency, water use and emissions. The company has committed to 100 per cent renewable electricity by 2030.
Microsoft must pay a $664,000 housing and productivity contribution before a construction certificate is issued, surrender a 2019 consent for a service station on the site, and honour a planning agreement with council signed in September 2025.
The consent lapses after five years unless work starts.
