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A data centre proposed for North Katoomba that will employ just five people has incensed locals, including the Blue Mountains mayor, who has called the development a “pile of crap”.
The $4.8 million development, which will probably be decided at a state level, is the latest in NSW’s data centre boom.
MAK Urban Group’s application proposes the centre on a residential street, a block from a school and bordering a park. The centre is expected to employ two to five members of staff.
Residents Jackie Manners and Letitia Kemister oppose the development, with Manners saying the development threatens the Blue Mountains’ spirit.
“This is a peaceful residential area in a world-heritage-listed area … [the proposal] just destroys that type of community values,” she said.
Melanie Turner lives a block from the site. She worries about the impact of low-level noise pollution on quiet Katoomba.
“It’s not appropriate in a residential area,” she says. “It’s going to impact the quiet enjoyment of my property … it’s like a low-level conversation that you can’t politely leave.”
The applicant’s noise impact assessment report identifies “a high risk of low frequency noise intrusion”.
Hundreds of people have joined a Facebook group that Manners launched on June 12, which organised submission-writing meet-ups and co-ordinates protest poster deliveries.
Key concerns are 24/7 noise pollution, pressure on electricity supply, and excessive water consumption.
Kemister is concerned about PFAS chemicals that are sometimes used in cooling methods as her community reels from dangerously high PFAS levels in their water.
The applicant’s bushfire assessment report indicates possible hazards. The available Asset Protection Zones – reduced vegetation spaces that minimise bushfire risk – are below minimum requirements.
MAK Urban Group general manager Mohammad Hammoud said the project was “designed as a robust, non-combustible structure” and is committed to achieving an “acceptable level of bushfire safety”.
But Mayor Mark Greenhill remains opposed to it.
“We’re the only area in Australia that’s a city within World Heritage National Park … This, in my view, was a diabolical idea.”
Due to the high volume of submissions, the application will probably go to the state government’s independent planning panel.
Hammoud said the centre would be a “significantly reduced-scale, community-focused development … designed with its surroundings in mind”.
Australia is experiencing a data centre boom.
Recently, OpenAI co-founder Sam Altman said Australia could become the “data centre capital of the world”. In 2024, Australia was the second-biggest data centre investment destination globally.
Although data centres support AI infrastructure, Australian National University environmental accountant Dr Michael Vardon said that local communities suffer from their operations.
“If you put a data centre in a catchment which is already under strain, then what’s nationally not very big can be locally extremely significant … Their concerns are genuine and need to be addressed.”
MAK said it would reduce the environmental impact through measures such as low-carbon construction materials and heat capture.
The application is on exhibition until July 8.
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