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$500m rival bid to data centre

31 Oct, 2008 06:59 AM
A new data centre consortium has emerged to challenge Technical Real Estate's claims that developers are being scared out of the ACT by opposition to its $1billion Tuggeranong development.

The rival plan could see an investment of up to $500million on a data centre and solar-thermal farm to offset the massive power drain.

The Greens who will hold the balance of power in a new-look ACT Assembly to be announced by the weekend say the new proposal is evidence Technical Real Estate is engaging in brinkmanship.

Greens MLA Amanda Bresnan said the new proposal was a sign the ACT was not reliant on the Tuggeranong data centre.

''I think it says that there are other companies willing to build these sorts of developments, so their [Technical Real Estate's] claims that if they go no one else will come are incorrect,'' she said.

Earlier this week, Technical Real Estate warned it would take its proposal out of the ACT if the Greens went against parliamentary procedure and opposed the Mugga Lane project without heeding the advice of an environmental impact statement.

The consortium behind the new plan includes Sanctuary Energy, Wizard Power and Springfield Land Corporation.

Springfield is currently completing a similar-sized Polaris data centre in south-east Queensland.

It says there are other groups interested in building more data centres in Canberra.

Springfield's commercial executive general manager, Chris Schroor, said the company had been in discussions on the project for about three months.

''We know that there's pent-up demand in Canberra for data centre space, so it's been on our radar for quite some time. We've found a site we believe is suitably zoned for a data centre and we are in mid-range discussions with a potential joint venture,'' Mr Schroor said.

The group said it had made representations to all three major parties in recent months.

But Mr Schroor said the group would not be looking for large government incentives to get the project off the ground.

''We don't need handouts from anybody, it can support itself: we just need some tenants in there,'' he said.

The group's proposal would see a 7000sqm site for the data centre, with a separate 250ha farm for the solar-thermal generation that would provide up to 100MW of power back into the grid.

Earlier in the week, Technical Real Estate director Stephen Ellis said any moves by the Greens or Liberals to see its project moved from the current site would discourage other developers.

He said its consortium with ActewAGL had already spent $3million on the project, a cost that would be lost if they were told to find a new site.

His colleague, Andrew Campbell, said the Tuggeranong project had received unprecedented and unfair scrutiny.

There were other operators looking at building data centres, but not at the same scale.

''It's not at the same level as what we're trying to provide, but I am aware of two other developers in the market, they will always be there and they will be if we leave,'' he said.

Chief Minister Jon Stanhope gave in-principle support for the project. ''A Labor Government would be interested to learn of any proposals and I am pleased that the consortium saw the ACT as a place in which to do business despite the determination of the Liberal Party to undermine independent planning processes,'' he said.

Tony Robey, from Wizard Energy, said representations had been made to the Government.

He said the plant would use solar technology jointly developed at the Australian National University that would see extra power integrated into the system.

Liberal leader Zed Seselja said it was important for the next government to examine all possibilities for data centres in Canberra.

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Date: Newest first | Oldest first
When TRE, ACTEW and Stanhope initially announced this $2 billion project, they couldn't even get the location correct. Three weeks later they said it was unviable and halved the value. Now they are saying they will only build it on an inappropriate site. Sounds very dodgy to me. Get rid of them, and get some developers who will build the project on an appropriate site using solar power. A win, win situation all round
Posted by Concerned, 31/10/2008 7:40:02 AM
Would be great...would create jobs...would provide much needed investment in ACT...would enhance Canberra's reputation....but alas the Green wowsers will stop this no doubt.
Posted by Greg WHite, 31/10/2008 8:06:33 AM
Fantastic. Cleaner, greener and open competition - just what we needed all along instead of closed business architected by the out-of-touch previous Chief Minister. Let's hope Canberra becomes a truer "green" data centre hub with more effort put in than just trying to build a 10-year old technology gas turbines power plant.
Posted by Digga, 31/10/2008 9:06:24 AM
So after all the threats and forecasts of doom from TRE earlier in the week (and over several months, if memory serves), we find their competitors are willing to move in. Perhaps they've surmised a Liberal-Greens coalition would move away from the current planning system where you have to be personally linked to the a senior ALP figure to get a planning "tick" (as embodied in the TRE development)? Far from being "anti-business", I think the Greens might end up being "fair to business".
Posted by John H, 31/10/2008 11:05:46 AM
How disingenuos of TRE to say "wait for an independent EIS'- that they are paying for!! PUHLEASE!
Posted by Swinging Voter, 31/10/2008 11:07:29 AM
Of course this proposal should be subject to the same scrutiny as the CTC proposal. I would be very concerned if the proponents did not accept this requirement from the start. Thgis should include a true independent and thorough EIS. It should also be planned for appropriately zoned land from the start- not a backroom deal over another 'Broad acre' site adjacent to homes.
Posted by PeterV, 31/10/2008 11:11:21 AM
Is it a data centre with a (maybe) generator added on. The concerns all seem centered on the add-on and it amazes me that with so many smart people in the ACT with all the wide open space we have that we can not find a suitable location. This is jobs, this is a high-tech environment and a growth area. If we let this go we need our heads read. Yes I live in Tuggeranong and yes I want it to be safe, but it seems emotion has us thinking it's better to flush the project than make it work - crazy.
Posted by Barry, 31/10/2008 12:05:24 PM
The Greens and the Liberals are well aware that the TRE/ActewAGL proposal has been dodgy from the start. This consortium and the Labor govt have tried to ram this project through on the Tuggeranong site because the land (broadacre) is cheap and only available to them. Finally, the truth: other businesses are prepared to build large data centres in Canberra and follow PROPER planning and community consultation procedures. TRE, pack your bags.
Posted by Banjo, 31/10/2008 12:40:40 PM
Well, the Libs and Greens seem to be able to achive more than Johnny S (I wont include the rest of Labor, because I think they do a good job!). Perhaps a government of the best and brightest from all three, not inclusive of the human scowl Johnny S would actually help Canberra.
Posted by Bob, 31/10/2008 1:35:57 PM
As per any thing in this space - be careful. The solar angle is a good story and makes everyone feel good and it seems to address the concerns - but why has it taken until now??? Wait to see what concessions are required, I suspect that the political entrapment is occurring.
Posted by Spin Sick, 31/10/2008 1:47:31 PM
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Artist's impression of the proposed Tuggeranong plant.
Artist's impression of the proposed Tuggeranong plant.

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