GreenSquareDC Withdraws 120MW Data Center Proposal in Perth Amid Community Backlash
May 28, 2026
GreenSquareDC Withdraws 120MW Data Center Proposal in Perth Amid Community Backlash
Swiss-backed data center developer GreenSquareDC has withdrawn its application for a 120MW facility in Hazelmere, a suburb of Perth, Western Australia, following strong opposition from local residents and political figures over noise concerns and the site’s proximity to a school and environmental resources.
The proposed data center, which was expected to span approximately 15,000 square meters (161,460 square feet), was planned for an industrial site north of Stirling Crescent, south of the Helena River, and located near the Helena River Steiner School, a kindergarten and primary school. The project, if built, would have been one of the larger data center developments in the region, aligning with growing demand for digital infrastructure in Western Australia.
Community backlash centered on the potential noise from emergency backup generators, the use of local environmental resources, and the facility’s closeness to the river and school. In a letter to the City of Swan Council, GreenSquareDC CEO Charles Penny stated that the methodology used to assess potential noise from emergency backup generators was “unrealistic and impractical.” He added, “It is unfortunate that the assessment has been focused on this highly conservative emergency scenario, rather than the technical merits of the proposal.” Penny emphasized that the company firmly believes the development is an appropriate use for the established industrial site and aligns with existing zoning and strategic objectives for employment, investment, and critical digital infrastructure in Western Australia.
The withdrawal was hailed as a victory by local MP Tania Lawrence, who represents the Hasluck electorate. Sharing Penny’s letter on social media, Lawrence described the decision as “a major win off the back of community coming together.” She acknowledged the importance of data centers and AI infrastructure for national security and startup ecosystems but stressed that such development “must, however, be done sustainably and underpinned by a strong social licence.”
GreenSquareDC launched in October 2022 and was acquired by Swiss private equity firm Partners Group in March 2025. The company recently underwent a leadership change, with former chief development officer Charles Penny replacing founder Walt Coulston as CEO. In addition to the withdrawn Perth project, GreenSquareDC is redeveloping a former IBM site in Sydney, signaling continued expansion in Australia’s competitive data center market despite this setback.
The rejection of the Hazelmere proposal highlights growing scrutiny of data center developments in Australia, where community opposition and environmental regulations are increasingly shaping the pace and location of new projects. As demand for AI and cloud infrastructure surges, developers may face more pressure to secure social and regulatory approval before breaking ground.
Source: datacenterdynamics
