Proponents of the Mugga Lane $1billion data centre have been forced to relocate their proposed site because of the threat the Greens and Liberals would pass legislation to kill the project.

If the data hub moves to an alternative site, Chief Minister Jon Stanhope says the Government could be forced to compensate the proponents for some of the $3.1million they have spent so far.

A $300,000 environmental impact study on the project, which Mr Stanhope says reveals no health or environmental concerns, will be published on Monday, but the Opposition and cross bench have said they will continue to oppose the project. Mr Stanhope said the consortium behind the project asked directly for compensation in a letter he received this week.

The proponents, Technical Real Estate, did not specify an amount of money.

Mr Stanhope said he understood the proponents' position.

''If I was a major company and, consistent with the law, pursued a development application on a block of land and I'd spent $3.1million consistent with that planning process ... then I'd be asking, 'Well, what capacity is there for some of that $3.1million of effort and work and research that we've already done, to be relevant to an alternative site?''' he said. ''I think that's the first thing that I'd ask.''

Mr Stanhope was taking advice on the compensation issue.

''I don't know whether it's possible. I've asked for advice on these things, but certainly that's what the proponents have asked for and that's what I've asked my officials to advise me on,'' he said.

The Canberrans for Power Station Relocation lobby group said the Government should not waive the normal development application processes if the project was moved.

Spokesman Dugald Holmes also questioned the grounds for compensation.

''If you're going to move the power station then it should be subject to the normal processes and controls because it's quite a risky development that requires site-specific studies,'' he said yesterday.

''As we understood, they hadn't got any rights to the block of land, so in what circumstances outside the statutory process has there been an agreement made which implies that there would be compensation payable?''