Community Opposition Derails $1.1 Billion Data Centre as Global Backlash Grows

A $1.1 Billion Project Scrapped

GreenSquare, an Australian data centre provider acquired by a private equity firm last year, has withdrawn its application to build a three-storey, 15,000-square-metre data centre in Hazelmere, 15 kilometres east of Perth's central business district. The facility would have created nearly 3,000 construction jobs and 180 permanent positions, contributing an estimated $635.5 million to the state economy, according to the company.

However, residents flooded the local council with nearly 1,900 objections over noise, environmental damage, and proximity to areas of cultural significance to First Nations people. The proposed site sat roughly 40 metres from a river channel and adjacent to a conservation wetland. The council found that 88 diesel backup generators posed unacceptable noise risks to the surrounding residential area and recommended rejection.

A Global Trend Gathering Pace

The Hazelmere withdrawal is one example of a broader pattern. At least 48 data centre projects representing $156 billion in investment were blocked or stalled by local opposition in 2025 alone. Leading AI firms anticipate spending $710 billion on data centres across North America in 2026, but community resistance and power infrastructure constraints threaten those ambitions.

In the United States, more data centre rejections have occurred since January 2026 than in the whole of 2025. A nationwide poll found that a majority of Americans view data centres negatively, with concerns centred on rising electricity bills, water consumption, and minimal local job creation. Reports suggest data centres could account for 10 to 15 per cent of total US electricity demand within a matter of years.

Calls for Big Tech to Engage

Critics argue that technology companies have largely left underfunded local governments to navigate the backlash alone. Opposition groups now number more than 188 across 24 states, spanning both political parties. The tension remains unresolved: companies insist infrastructure must grow for the nation to remain an AI power, whilst communities demand a say in developments that reshape their electricity bills, water supplies, and landscapes.