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Thursday August 20, 2026 
20 August 2026
Gateway Capital is planning an 81MW data centre for the northern Sydney suburb of St Leonards, with Lendlease slated to help build and operate the facility.
Planning documents filed with the NSW government detail an estimated $1 billion project in the Gore Hill data centre hotspot, close to existing and under-development facilities owned by NEXTDC, Goodman Group, Keppel and Telstra, as well as the ASX Liquidity Centre.
A scoping report prepared by Urbis said the 1.82 hectare Frederick Street site currently contains warehouse, recreation and office buildings, parking, loading areas and hardstand.
“The site is within the Artarmon industrial area, which supports a significant proportion of the Lower North Shore’s industrial and urban services,” the report said.
“The site is also in close proximity to the Gore Hill Technology Park which comprises high-technology and innovation uses, including other data centre developments.”
The planned five-storey data centre would have 16,634 square metres of gross floor area and contain 11 data halls, 44 backup generators and two onsite 33kV substations. Its anticipated power usage effectiveness is below 1.3.
The report says the facility would be “constructed and operated by Gateway Capital and Lendlease” and operate 24 hours a day. No customer, anchor tenant or operating partner is identified.
Lendlease already has a substantial data centre business. In Sydney it is developing Project Blue Tongue, a 60MW facility with provision for a second 60MW building. It has also pursued data centre investments across Australia and Asia through Lendlease Data Centre Partners.
The Frederick Street project could therefore represent a further expansion of Lendlease’s Australian data centre activities beyond construction alone.
The planning material does not disclose whether Gateway has secured an anchor customer. Its reference to providing cloud storage to “available clients” leaves open the possibility that the facility will be developed as a wholesale or multi-tenant asset rather than for a single hyperscaler.
Gateway acquired 12 Frederick Street with Invesco Real Estate’s Urban Infill Logistics joint venture from Dexus for $118.5 million in 2023. The property then comprised 13 warehouse and office units totalling about 19,400 square metres.
Urbis said the site was selected partly because of its industrial zoning and “limited nearby residential sensitive receivers”, as well as its proximity to public transport and the Ausgrid Sydney East substation.
The site is around 5km from Sydney’s CBD and sits within the Willoughby local government area.
The report said the project would support NSW’s ambition to be a leading digital economy and improve “the national performance of data networks available for the purposes of artificial intelligence, automation, analytics and security”.
“The proposal supports the major economic driver of digital technology and constitutes critical support infrastructure within a rapidly evolving, digitally dependent society,” Urbis said.