Data CentresPatrick LauWed 29 Jul 26
Plans for 1200 Homes at Lithgow Power Station Site Goes on Show
Plans are on exhibition for a long-dormant former coal-fired power station in the Blue Mountains with 1200 homes and 3500 jobs in the offing.
The 620ha site at the decommissioned Wallerawang generator, 10km from Lithgow, would be rezoned under a state-assessed proposal by owner Greenspot.
The plan comes as the western fringe of the Blue Mountains struggles with a closure on the Great Western Highway projected to last up to 18 months. Meanwhile, retiring coal stations such as Hazelwood are increasingly being considered for data centre developments.
Under the proposal, the 1200 homes would be joined by an industrial and commercial precinct with heights up to five storeys in designated areas. More than 100ha would be retained as protected conservation land and open space.
EnergyAustralia decommissioned the plant in 2014 and stranded asset developer Greenspot acquiring it in 2020. Demolition and remediation followed between 2021 and 2023.
Coal mining and electricity generation provide about 46 per cent of the town’s economic activity, and employ 16 per cent of the workforce. EnergyAustralia is scheduled to close the nearby Mt Piper plant in 2040, although SEARS have been issued for proposals extending the lifespan of local mines to 2042.
Lithgow mayor Cassandra Coleman said that the rezoning would “drive the next stage of new industry for our community”.
“The many community development opportunities and business opportunities this proposal provides again shows that Lithgow continues to be recognised as a critical regional hub,” Coleman said.
According to the mayor, jobs are a more pressing need than houses locally. Council waged a long campaign to re-activate the 11.6ha Loco railyard, which has sat dormant since 2003. Manufacturing conglomerate the Borg Group acquired the site earlier this year, raising hopes for re-industrialisation rather than transition to residential use.
However, a long-running closure of the Great Western Highway at Victoria Pass will extend until the middle of 2027, after a convict-era bridge failed in March. Detours via the Darling Causeway and Bells Line of Road are adding hours to trips, and limiting the size of vehicles that can use it.
And renewable energy precincts, mooted for retiring coal generators, may be joined by data centres seeking to exploit their water connections alongside their electricity connection infrastructure.
Legislation is due to be tabled early in 2027 mandating that data centres be responsible for their own power usage, although the timing and manner of that paired energy generation is yet to be determined.
