Microsoft pulls out of $350m plan to build multistorey data centre after resident backlash

Microsoft has pulled the plug on a multimillion dollar proposal to build a high tech ‘data centre’ after the plans sparked opposition from local residents and business owners.

Residents have welcomed the withdrawal of the plans.

Microsoft has pulled the plug on a multimillion dollar proposal to build a high tech data centre on Sydney’s north shore after the plans sparked opposition from local residents and business owners.

The global tech giant has confirmed it will no longer pursue a $349.6 million proposal to redevelop the Lane Cove Technology and Media Park into a new four storey “factory of the future” that was aimed at storing online information in the ‘cloud’.

The proposal would have involved building 12 data halls along with electrical substations, loading docks, 13 emergency generators, and on-site fuel storage tanks.

But after two years of planning work, a spokesman for Microsoft in a statement confirmed the company was “no longer proceeding” with the development.

The spokesman declined to provide details for the decision.

The data centre would have been used to store online information.

It is understood the company is still pursuing a separate plan to build a new $1.3 billion data centre in Kemps Creek in Sydney’s west.

The news comes after residents living near the site raised concerns over the impacts of the development including the building’s height, noise, excavation works, spoil removal, handling of hazardous materials, loss of trees, and the storage and use of diesel fuel at site.

There were also concerns over the demolition of existing buildings at the site which is home to businesses.

The development would have involved the demolition of existing businesses.

Lane Cove North Residents Association convener June Hefferan said the news was a “win” for the local community.

“Residents did put up a lot of opposition but I’m not sure if that was the reason alone Microsoft pulled out because quite often these big companies just override the wishes of the community,” she said.

“I think we had some sound arguments – where they wanted to build it was right opposite single dwelling homes.

Resident June Hefferan.

“I know Sydney needs these data facilities, but they have to be properly placed and they should take into account their surroundings.”

According to those plans, the project would have provided “safe and efficient cloud-based storage capacity” at a time when online security has come under increased focus.

“A significant part of a data centre’s function was to facilitate the ongoing operation of critical infrastructure and delivery of critical services including water, food, transport and finance. It is imperative that the operations of data centres are completely secure and resilient,” the plans stated.

There have already been several other data centres built on the north shore including a $238 million data centre by NextDC on the corner of Broadcast Way and the Pacific Hwy in Artarmon.