The Swiss-backed data center company GreenSquareDC has withdrawn its application for a 120MW data center in Perth, Australia

GreenSquare was proposing to build a roughly 15,000 sqm (161,460 sq ft) data center in the town of Hazelmere, north of Stirling Crescent, South of Helena River, and east of Helena River Steiner School, a kindergarten and primary school.

But concern about the data center’s proximity to the river and school, its use of environmental resources, and potential noise pollution led GreenSquare CEO Charles Penny to withdraw its application.

In a letter written by Penny and sent to the City of Swan Council, the CEO said that the methodology used to assess the potential noise created by emergency backup generators was “unrealistic and impractical.”

“It is unfortunate that the assessment has been focused on this highly conservative emergency scenario, rather than the technical merits of the proposal,” the letter continues.

“We continue to firmly believe that the proposed development is an appropriate use for this established industrial site in Hazelmere and is well aligned with the existing industrial zoning and strategic objectives for increased employment, investment, and the establishment of critical digital infrastructure within Western Australia.”

Tania Lawrence, the Australian MP for Hasluck, who shared Penny’s letter on social media, said that this was “a major win off the back of community coming together.

“Securing data centers and AI infrastructure will strengthen our security, support our startups, and researchers. It must, however, be done sustainably and underpinned by a strong social licence.”

GreenSquare launched in October 2022 and was acquired by Swiss private equity firm Partners Group back in March 2025.

The company recently shuffled its leadership, replacing former CEO and founder Walt Coulston with Charles Penny, the company’s former chief development officer.

Greensquare is redeveloping a former IBM site in Sydney.