A proposed 120-megawatt facility designed to fuel the expansion of artificial intelligence and cloud computing in Western Australia has been scrapped. GreenSquare, the developer behind the project, withdrew its application for a massive datacentre in Hazelmere following a wave of community opposition and a critical report from local government officials.
The project, which would have seen a 15,000-square-metre, three-storey structure rise 15km east of Perth, became a flashpoint for debates over the physical cost of the digital economy. While the developer positioned the site as a critical piece of infrastructure for the region’s tech growth, local residents and Indigenous advocates argued that the environmental and cultural price was too high.
The City of Swan council review of the proposal drew nearly 1,900 public submissions, reflecting a significant level of local engagement. The process culminated in a responsible authority report that recommended rejecting the development, primarily due to concerns over noise pollution and the site’s proximity to sensitive areas.
The noise conflict and operational risks
At the heart of the council’s technical objection was the reliance on diesel generators. While datacentres typically run on the grid, they require massive backup power systems to ensure “five-nines” availability—the industry standard for near-constant uptime. The council found that in the event of a power outage, the noise levels produced by these emergency generators would exceed allowable limits for both day and night.
This noise would have directly impacted a nearby primary school and local residents. GreenSquare attempted to mitigate these concerns by arguing that the probability of a total power failure requiring such generators was low and that any operation would be temporary. However, council staff maintained that the potential for excessive noise in an emergency scenario was an unacceptable risk.
Charles Penny, CEO of GreenSquare, expressed frustration with this focus in his letter to the council. He argued that emergency generators are “contingency infrastructure designed to operate only during rare network outage events and routine testing periods.”
Penny suggested that the decision to prioritize emergency noise levels over the facility’s utility creates “considerable uncertainty for future investment in critical digital infrastructure in Western Australia.” He called for the state to implement planning frameworks that are more “practical, balanced, and reflective of the operational realities” of the sector.
Cultural heritage and environmental sensitivity
Beyond the technical dispute over decibels, the project faced a deeper conflict regarding the land itself. The Bibbul Ngarma Aboriginal Association highlighted that the proposed site sat upon two Aboriginal heritage sites, placing it in a highly sensitive cultural context.
Francesca Flynn, executive director of the Bibbul Ngarma Aboriginal Association, criticized GreenSquare’s perspective, stating that the company’s comments showed a “deep lack of understanding” regarding the site’s inappropriateness. She noted that the development was planned approximately 40 metres from a river channel and adjacent to a conservation wetland.
For the local community, the victory represents a successful defense of the natural and cultural landscape against industrial encroachment. Flynn expressed “relief and joy and gratitude” that the community stood together, asserting that the outcome sends a clear message: datacentres belong in appropriately serviced industrial areas, not in buffer zones along rivers and heritage sites.
The following table outlines the specifications of the proposed development that was withdrawn:
| Feature | Detail |
|---|---|
| Total Floor Area | 15,000 square metres |
| Power Capacity | 120 Megawatts |
| Structure | Three-storey facility |
| Primary Purpose | Cloud computing and AI acceleration |
| Location | Hazelmere, City of Swan |
Political fallout and the AI land grab
The withdrawal was welcomed by federal Labor MP for Hasluck, Tania Lawrence, who described the outcome as a “significant win for Hazelmere and the broader community.” Lawrence noted that the community had engaged constructively throughout the process and expressed satisfaction that their voices were heard, saving the neighborhood from “further anxiety.”
This clash in Perth mirrors a global trend. As the demand for generative AI explodes, tech giants and infrastructure developers are racing to build “AI factories”—massive datacentres that require immense power and cooling. However, these facilities are increasingly meeting resistance from local populations concerned about energy consumption, water usage for cooling, and the industrialization of rural or culturally significant lands.
From a technical standpoint, the “operational realities” Penny mentioned are real; AI workloads require dense power configurations that push local grids to their limits. Yet, as this case demonstrates, the technical necessity of a project does not override the social license required to build it.
The decision marks a pivotal moment for infrastructure planning in Western Australia, suggesting that future “digital footprint” expansions will require more rigorous site selection and a deeper integration of environmental and cultural impact assessments from the outset.
The City of Swan is expected to continue reviewing its planning frameworks to better accommodate industrial growth while protecting residential and heritage zones. There is currently no scheduled date for a new application from GreenSquare at a different site.
Do you think the growth of AI infrastructure should take precedence over local heritage and noise ordinances? Share your thoughts in the comments below.
