Gateway Capital is considering developing an 81MW data centre at St Leonards in Sydney’s Lower North Shore, according to planning documents that outline a potential AUD 1bn, five-storey facility on an existing industrial site. Gateway has confirmed that it is considering data centre use at 12 Frederick Street, St Leonards, over the medium term, after a scoping report lodged with the NSW government detailed plans for a facility.
The proposed development would occupy the existing 1.82-hectare industrial site and comprise approximately 16,634 square metres of gross floor area, including 11 data halls, according to the scoping report prepared by Urbis. Gateway said the information contained in the report is accurate but stressed that the project remains under consideration.
“We are considering a data centre use on the site over the medium term,” Gateway Capital co-founder and CEO Stuart Dawes told W.Media. “This is consistent with our active approach to managing assets whereby we’ll look at all opportunities to create value for our stakeholders.”
The company added there was nothing further it could disclose at this stage.
81MW facility
The potential data centre would be a five-storey building containing 11 data halls, with the scoping report identifying an anticipated power usage effectiveness of below 1.3. The facility would have 44 backup generators and two on-site 33kV substations, with the report indicating that it would operate continuously.
The proposed 81MW IT load would make the project a substantial addition to Sydney’s data centre market, although the scoping report does not identify an anchor customer or hyperscale tenant. The report says the facility would provide cloud storage to “available clients”, suggesting that the project could potentially operate as a wholesale or multi-tenant facility rather than being designed around a single identified customer.
Gore Hill data centre cluster
The site is located within the Artarmon industrial area, close to the Gore Hill Technology Park and a growing concentration of data centre developments. The scoping report identifies its proximity to existing and proposed data centre facilities operated by companies including NEXTDC, Goodman, Keppel and Telstra, as well as the ASX Liquidity Centre.
The site is also approximately 5km from the Sydney CBD and close to major road and public transport infrastructure. Urbis said the site’s industrial zoning, proximity to electrical infrastructure and limited nearby residential sensitive receivers were among the factors supporting its suitability for the proposed use.
The property is currently occupied by warehouse, recreation and office buildings, with parking, loading areas and hardstand. Gateway acquired the property from Dexus in 2023 for AUD 118.5m, alongside Invesco Real Estate through their Urban Infill Logistics joint venture. The site was then occupied by 13 warehouse and office units covering approximately 19,400 sqm.
Power and infrastructure
The proposed facility would include two on-site 33kV substations, with the scoping report identifying the site’s proximity to the Ausgrid Sydney East substation as an advantage.
The data centre would also incorporate 44 backup generators.
At a PUE of below 1.3, an 81MW IT load would imply a substantially larger total facility electrical requirement once cooling and other ancillary loads are included, although the scoping report does not establish a final grid connection capacity.
The project documentation also identifies the site’s proximity to existing utilities and transport infrastructure as supporting its suitability for data centre development.
Gateway and Lendlease
The scoping report says the facility would be constructed and operated by Gateway Capital and Lendlease. Lendlease already has data centre development activity in Sydney, including its Project Blue Tongue facility, a planned 60MW development with provision for a second 60MW building.
The potential St Leonards development could therefore represent a further data centre project involving Lendlease, although Gateway’s latest statement does not provide any further detail on the relationship.
Early-stage proposal
The project remains at an early stage. Gateway’s statement makes clear that it is considering data centre use for the property rather than announcing a committed development. That said, the potential development would add to a growing concentration of data centre projects around Sydney’s Lower North Shore, where access to electricity, fibre connectivity and proximity to Sydney’s major business and technology markets have made industrial sites increasingly attractive for digital infrastructure.