The Pulse | 24 September 2026

Gigawatts in the Regions, Contracts in the West: Data Centres, Roads and Modular Builds Gather Pace Across NSW

This week's reporting put the NSW data centre pipeline on a scale running from a couple of hundred megawatts in Western Sydney's industrial belt to well over a gigawatt in the regions. 

The Department of Planning, Housing and Infrastructure granted consent on 14 September 2026 to a $2.17 billion, three-building data centre at Glendenning [3]; CDC Data Centres lodged scoping documents for a 1.4 GW campus on rural land outside Wagga Wagga [4]; and AirTrunk attached a community benefits package of more than $37 million to its proposed 540 MW facility on the former Kurri Kurri aluminium smelter site [7].

Across transport, health and housing, a run of projects cleared their next procedural step, while more construction work shifted into factories. Contracts were signed on five Western Sydney road upgrades worth nearly $3 billion, led by $1 billion packages on Mamre Road and Elizabeth Drive [5]; all ten stations between Sydenham and Bankstown were reported complete ahead of Southwest Metro services [2]; the Mannix Parade rezoning at Warwick Farm was finalised for about 545 homes [6]; and the Clinical Services Building at the $630 million Fairfield Hospital Redevelopment went on exhibition [10]. On the offsite side, Freecity's Macquarie Park student tower passed the halfway mark in modules [8], Prefab Concepts opened a Milperra factory [1], and the federal government moved to seek industry interest in an advanced manufacturing facility for the $90 billion Newcastle to Sydney line [9].

Data Centres: Glendenning Approved, Wagga Wagga Scoped and a Kurri Kurri Package

Urban Digest reported that the Department of Planning, Housing and Infrastructure approved the Glendenning Road Data Centre (SSD-73761707) on 14 September 2026, a $2.17 billion project at 2 Glendenning Road in the Blacktown local government area [3]. The consent covers three five-storey buildings totalling 50,233 square metres of floor space on a 10.43-hectare industrial site near the M7 Motorway, with one building delivered in each of three stages. The exhibited plans provided for 97 standby diesel generators and three internal substations, and the article put power consumption at approximately 202.4 MW, with around 1,076 direct construction jobs and 106 operational roles forecast [3]. The applicant is Lehr Consultants International (Australia) Pty Ltd [3].

Capital Brief reported that CDC Data Centres has sought approval for a 1.4 GW campus at Wagga Wagga, with scoping documents describing four single-storey buildings on a 103.8-hectare rural site 11 kilometres south of the city [4]. The proposal also takes in two on-site substations, up to 384 backup diesel generators and mechanical cooling plant, and the scoping study frames it as digital infrastructure serving rising NSW demand for connectivity, data storage and AI computing [4]. The reporting noted the site would need to be rezoned from its rural classification, and that grid capacity to supply a load of that size would need to be established by CDC and the planning authorities [4]. Capital Brief placed the proposal against Australia's installed data centre capacity of about 1.5 GW, as estimated by Data Centres Australia, with total capacity forecast to reach 3.2 GW by 2030 [4].

SmartCompany reported that AirTrunk is proposing a multibillion-dollar, 540 MW data centre of about 44,000 square metres over two storeys on the former Kurri Kurri aluminium smelter site, backed by a community benefits package of more than $37 million [7]. The package includes over $12 million for the planned Loxford District Sporting Facility and Multipurpose Community Facility, plus a community battery that would take $200 a year off power bills for qualifying households in and around Kurri Kurri, and AirTrunk said the facility would support 350 long-term jobs, with thousands more through construction [7]. David Aston, chief executive of Kurri Kurri Community Services, pointed to training pathways for local young people, saying "We believe there’s an opportunity to create a pipeline of people that could develop trade skills that would be very relevant in a data centre environment." Cessnock City councillor Mitchell Hill described the contribution as "one of the largest" he had encountered from any single project in his council tenure. The proposal is being assessed as State Significant Development and remains at the Environmental Impact Statement stage [7].

Western Sydney Roads and the Southwest Metro Home Stretch

The NSW Government announced that contracts are now signed on five jointly funded Western Sydney road upgrades worth nearly $3 billion, with construction expected to begin later this year [5]. Gamuda BMD JV holds the two largest, each valued at $1 billion: Mamre Road Stage 2, which will take 6.1 kilometres of Mamre Road from a single lane to two from Erskine Park Road to Kerrs Road at Kemps Creek, and Elizabeth Drive, which will be widened to two lanes each way from Devonshire Road to Badgerys Creek Road to improve access to Western Sydney International Airport [5]. Fulton Hogan will deliver the $440 million Garfield Road East widening between Box Hill and Riverstone, BMD Constructions the $247 million Henry Lawson Drive Stage 1B dual carriageway at Milperra, and Ward Civil & Environmental Engineering the $190 million upgrade of The Horsley Drive at Horsley Park [5].

Further down the pipeline, the release said Spring Farm Parkway Stage 2 is out for consultation, the $200 million Homebush Bay Drive intersection upgrade at Sydney Olympic Park has planning approval with works expected in 2027, and designs for the Picton Bypass and the Windsor Road Upgrade at Rouse Hill will go on show in the coming months [5].

In a separate announcement, the NSW Government said Sydney Metro has finished converting all ten heritage stations on the Sydenham to Bankstown line, a corridor dating back 130 years, with Southwest Metro now in the last stage of operational readiness [2]. Works included 360 automated platform screen doors, more than 1,300 gap fillers for the curved platforms, 145 passenger information displays and 790 CCTV cameras, and new lifts mean every station on the line is now lift accessible, with heritage features such as the Canterbury Station platform chimneys kept and restored [2]. Testing, under way since April 2025, has logged more than 6,150 of 9,000 required hours and around 24,750 of 30,000 required kilometres, and daytime through-running on the full line started this week, with passengers still alighting at Sydenham [2].

Offsite Delivery: Modules, Pods and a High-Speed Rail Manufacturing Facility

Architecture & Design reported that Freecity's 20-storey purpose-built student accommodation (PBSA) project at 169-171 Herring Road, Macquarie Park has reached Level 12, with more than half of its modules in place [8]. The first modules were craned in on 12 June and 12 levels went up across 13 weeks, close to one floor a week, on a 528-unit building set to be the tallest volumetric modular construction (VMC) building in Australia once complete [8]. The modules are made in China and supplied through Space Labs Australia, Freecity's modular integrator, and each one reaches site with its facade already fitted, so factory production and fitout proceed while site preparation and other works continue [8]. Freecity Co-Founder and Joint CEO Lawrence Zheng said "Herring Road is showing what can be achieved when manufacturing and construction are able to happen concurrently rather than one after another." Freecity is also planning a Parramatta build-to-rent tower of more than 60 levels that it expects would be the largest VMC building anywhere in the world [8].

Built Offsite reported that Prefab Concepts, a subsidiary of Winsman Group, has opened a Milperra factory and moved into the NSW market, making finished buildings as well as components [1]. Its five product lines are wet-area pods, kitchen and kitchenette modules, prefab houses, prefab offices and NDIS bathrooms, aimed at clients from government and community housing through to builders, developers, education, healthcare, industrial and remote accommodation [1]. According to the company, modules are built using engineered wall systems with mechanical, electrical and plumbing services pre-routed under an in-house Inspection and Test Plan, and it is now accepting early enquiries for projects while it brings production capacity online [1].

The Newcastle Herald reported that the federal government would open a call for expressions of interest on Wednesday to develop an advanced manufacturing facility (AMF) near the proposed corridor for the $90 billion high-speed rail line between Newcastle and Sydney [9]. The facility would draw on precision engineering, technology and advanced manufacturing to make the bulk of the project's construction components, with its location to be weighed through the EOI process [9]. High Speed Rail Authority (HSRA) chief executive Tim Parker said "My message to industry is very simple: dare to be different", citing robotics, BIM, 3D and digital methods, and gave the example of a railway equipment room assembled at the facility and moved underground for far less than building it in place [9]. The 191-kilometre link is in a two-year development phase that ends in an investment decision; if it proceeds, the Newcastle to Central Coast section would target 2037, with Sydney Central following in 2039 and Western Sydney International Airport in 2042 [9].

South West Sydney: Homes at Warwick Farm and a Clinical Services Building for Fairfield

The NSW Government has finalised planning controls for the 3.2-hectare Mannix Parade Precinct at Warwick Farm, around 400 metres from Warwick Farm Station and near the Liverpool city centre, enabling approximately 545 homes, of which at least 30 per cent will be social and affordable housing in perpetuity [6]. After technical work and talks with Liverpool City Council, the Homes NSW scheme was scaled back from the 670 homes exhibited last year, while the park grew from 1,800 to 2,500 square metres and open space overall rose by almost 40 per cent [6]. Building heights range from 4 to 11 storeys, with floor space ratios of 1.5:1 to 2.5:1, and the rezoning was assessed through the Social and Affordable Housing Rezoning pathway, set up to fast-track social and affordable housing proposals from the state's housing agencies [6]. "Mannix Parade is a great example of well-planned infill development, putting more homes close to public transport, jobs, schools, health services and other infrastructure people rely on every day," Planning Minister Paul Scully said.

The NSW Government announced that the Clinical Services Building planning documents for the $630 million Fairfield Hospital Redevelopment are now on public exhibition, with $550 million committed by the state and $80 million from the Commonwealth to expand the Emergency Department [10]. Subject to approval, the five-storey building would house operating theatres, medical imaging, an Intensive Care Unit and inpatient wards, as well as a new and larger Emergency Department, and would link to the existing hospital through a new main entrance and drop-off area [10]. Submissions on the Review of Environmental Factors close at 11:59pm on Friday 23 October 2026, and work is already under way on a multi-storey car park of more than 450 spaces, due for completion in late 2027 [10].

Final Thoughts

Two patterns run through the week's coverage. On digital infrastructure, the reporting from Urban Digest, Capital Brief and SmartCompany described data centre proposals growing in both size and reach, from a consented site inside Western Sydney's industrial belt to a 540 MW proposal at Kurri Kurri and a 1.4 GW campus at Wagga Wagga [3, 4, 7]. The questions raised in that reporting centred on grid connection, rezoning and benefits for host communities, and the Glendenning and Wagga Wagga schemes both listed substations and banks of backup diesel generators within their scope. The composition of work reported was consistent with power and electrical infrastructure forming a growing share of data centre construction in NSW.

On delivery, the week's announcements ran along two parallel tracks. Publicly funded work reached defined procedural points across Western and South West Sydney, with road contracts signed [5], metro stations completed [2], a rezoning finalised [6] and a hospital building placed on exhibition [10]. Alongside it, Freecity, Prefab Concepts and the High Speed Rail Authority each described moving more of the build into a factory, from student housing modules and bathroom pods to a proposed rail components plant [1, 8, 9]. The pattern of reporting was consistent with offsite manufacturing being positioned by its proponents as a route to shorter programs and firmer cost certainty on private and public work alike.

1. Built Offsite (18 September 2026). New Sydney prefab manufacturer opens Milperra operation. https://builtoffsite.com.au/news/new-sydney-prefab-manufacturer-opens-milperra-operation/

2. NSW Government (20 September 2026). All ten stations ready to go for Southwest Metro. https://www.nsw.gov.au/ministerial-releases/all-ten-stations-ready-to-go-for-southwest-metro

3. Urban Digest | by Stephanie (20 September 2026). $2.17b data centre project approved in Western Sydney. https://urbandigest.com.au/ssd-73761707-2-17b-data-centre-project-approved-in-western-sydney/

4. Capital Brief | by Dan Brunskill (21 September 2026). CDC plans one of Australia’s largest data-centre campuses in NSW. https://www.capitalbrief.com/briefing/cdc-plans-one-of-australias-largest-data-centre-campuses-in-nsw-f45f1148-faef-4d83-8987-97c759195b58/

5. NSW Government (21 September 2026). Mammoth investment: Nearly $3 billion worth of road projects on the way for Western Sydney. https://www.nsw.gov.au/ministerial-releases/mammoth-investment-nearly-3-billion-worth-of-road-projects-on-way-for-western-sydney

6. NSW Government (21 September 2026). Rezoning to unlock hundreds more homes for South West Sydney. https://www.nsw.gov.au/ministerial-releases/rezoning-unlocks-more-homes-southwest-sydney

7. SmartCompany | by Simon Thompson (21 September 2026). AirTrunk unveils $37 million data centre package in regional NSW. https://www.smartcompany.com.au/economy/airtrunk-37-million-date-centre-package-regional-nsw-locals-question-benefits/

8. Architecture & Design | by Architecture News & Editorial Desk (22 September 2026). Freecity achieves major milestone, crosses halfway point on Australia’s tallest VMC building. https://www.architectureanddesign.com.au/editorial/industry-news/freecity-major-milestone-halfway-point-australia-tallest-vmc-building

9. Newcastle Herald | by Matthew Kelly (22 September 2026). 'Dare to be different': high-speed rail's promise of advanced manufacturing jobs in the Hunter. https://www.newcastleherald.com.au/story/9355119/sydney-to-newcastle-high-speed-rail-line-will-drive-hundreds-of-jobs-under-a-new-manufacturing-plan/

10. NSW Government (22 September 2026). New look at $630 million Fairfield Hospital Redevelopment. https://www.nsw.gov.au/ministerial-releases/new-look-at-630-million-fairfield-hospital-redevelopment