Members from the Stop the Cooks River AI Project (SCRAP) are calling the backtrack a "win for people power". (Supplied: SCRAP)
Plans for another controversial AI data centre in Sydney have been scrapped, with a community group hailing the decision as a "victory for people power".
The facility, which was set to become part of a proposed logistics hub on the Cooks River at Arncliffe in the city's south, faced backlash from the local community after it was revealed in July last year.
Developers Stockland and John Boyd Properties proposed to redevelop the rezoned 18.3-hectare Kogarah Golf Club site into an estimated $3.5 billion logistics precinct including an AI data centre.
Stockland and John Boyd Properties withdrew their plans for the AI data centre. (Supplied)
Stop the Cooks River AI Project (SCRAP), which consists of hundreds of members, had been protesting against the development since forming in August.
'We were worried'
Group organiser Paddy Gibson said surrounding residents were celebrating the "very good win for people power".
"People really love this river and we're just horrified to hear that it could be threatened in this way,"he said.
Mr Gibson said it would have posed a risk to the fragile local ecology around the river, which is called Goolay'yari in local Indigenous languages, which was already recovering from "industrialisation over the years".
"There's endangered plants and other animal species in the green space," he said.
"There's plenty of people trying to work on remediating what is a very polluted river, and we were worried that this would set back those efforts."
Paddy Gibson says there are endangered plants and other animal species at the proposed data centre site. (Supplied)
He also mentioned concerns about power usage and possible water contamination.
A Stockland spokesperson said the partners were now focused on building a "world class logistics precinct which does not include a data centre as part of the amended Concept Masterplan".
"The site is on the doorstep of Sydney Airport and in close proximity to Port Botany and major transport infrastructure, making it uniquely suited for a logistics hub and has potential for mixed uses, like retail and hospitality,"they said.
"The project will also deliver a one-kilometre public foreshore link along the Cooks River and the future delivery of the 14-hectare Pemulwuy Park, as well as local road upgrades and improved active transport connections."
The spokesperson said the group would continue to engage openly with stakeholders as planning for the logistics precinct progressed.
'A wildlife sanctuary'
Bayside Greens councillor Peter Strong who had led council's opposition to the project said the decision was "very heartening".
Mr Strong said forums and outdoor events about the project had attracted large numbers of residents.
His main concerns were about excess energy and water use, noise, and the way AI was being "used and weaponised against the best wishes of humanity".
"That space has become a bit of a wildlife sanctuary since nothing much has happened with the old Kogarah Golf Club since they sold it," Mr Strong said.
Locals were concerned with the impact on water use and energy. (Supplied)
He said the withdrawal sent a message to the state government that "the council should have more of a veto on these data centres".
In August, the Minns government released its data centre policy framework which they said balanced the interests of households and investment in NSW.
A recent report following a parliamentary inquiry into data centres noted that the guidelines should have been in place "before developing any planning fast-track processes for these projects".
The government has until February next year to respond to the report.
Canterbury Labor MP Sophie Cotsis said she looked forward to seeing the revised logistics hub masterplan including a public foreshore link, road upgrades and improved active transport connections.
"The Minns Labor Government has established the Cooks River Consolidation Project to resolve longstanding tenure issues along the river," she said.
"As the local MP I am focused on working together with my colleagues and government agencies to see investment in the naturalisation of the river banks."
AI data centre pushback
Protesters at Merrylands rallying against a proposed AI data centre. (ABC News: Alex Lewis)
It is the latest in a series of proposed data centres to be scrapped following community opposition.
An AirTrunk data centre proposed in Lane Cove was also dropped, and another in Guildford in September.
Residents at Merrylands in Western Sydney have also rallied against the $1.1 billion Project Pluto Data Centre proposed by the Goodman Group, to be located next to the Guildford West Sportsground.
Labelled a state-significant development, locals said it was approved in July behind their backs.
The project did not receive a single submission from the public, with some locals saying they never received a letter.
Goodman Group said it had sent correspondence to more than 1,200 homes and businesses, three times.
SCRAP said it would continue campaigning against the logistics hub on the riverfront and for a ban on all new AI data centres.
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