‘Diabolical’: Huge AI call, 24/7 sound warning as Blue Mountains data centre knocked backA major AI call, sparked by fears of a chilling 24/7 noise, has put American behemoths on notice as they try to expand Down Under.Ben Graham@bengrahamjourno6 min readJune 29, 2026 - 2:14PMAustralians living near one of the nation’s most iconic natural wonders have scored a major victory in the global AI revolution, successfully knocking back a $4.8 million data centre amid fears of a disturbing 24/7 “low-frequency noise intrusion”.Eerie videos from the US show what residents living near data centres in America are facing, as some reportedly emit a constant high-pitched droning noise at all times of the day.Three cities in the US are now even suing the AI companies behind the data centres in their backyards as the noise becomes unbearable.New York state this month passed a one-year moratorium on large data centres. At least four other areas in the US have brought in temporary bans on construction.However, as the power-hungry AI industry expands at a rapid rate, Australia is emerging as a hot destination for new centres, and Australians across the nation are pushing back against them.Australia currently has at least 162 operational data centres, with another 90 or more in the planning and development pipeline, with the vast majority heavily clustered along the eastern seaboard in Sydney and Melbourne.Others you may likenewsnewsOver the weekend, a Sydney-based civil engineering and construction company, MAK Urban Group, was knocked back in its plans to erect a $4.8 million development in the heart of the Blue Mountains.MAK’s application proposes the facility on a residential street in north Katoomba, a block from a school and bordering a park. It’s about an eight-minute drive from one of Australia’s most iconic sights, the Three Sisters mountains. The centre is expected to employ two to five members of staff.The site would be an eight minutes’ drive from the Three Sisters lookout.Furious residents started the Stop Data Centres Blue Mountains campaign, which described the development as a “threat to peace”, citing 24/7 low-frequency noise intrusion, concern for pressures on electricity and water supplies, potential PFAS exposure and insufficient bushfire protections.The concerns of a 24/7 noise coming from the site would be a stark contrast to what residents experience now.“Katoomba at night is genuinely quiet. The night-time Rating Background Level is just 25 dBA – an extremely quiet acoustic environment,” the residents wrote in the petition. “Their own noise report modelled three different equipment scenarios. In every single one, low-frequency noise was still significantly above that background level at night. Even the ‘best case’ scenario – the one they’re calling compliant – still produces low-frequency noise that the report says ‘is likely to be audible.’Data centres like this one in the US are causing headaches for residents. Picture: AP Photo/Jenny Kane“The E4 General Industrial zone in the Blue Mountains must be interpreted in its local context: a World Heritage-adjacent city, with sensitive bushland, riparian corridors, quiet residential areas and serious bushfire risk.“It was not designed for energy-hungry digital infrastructure drawing 1–2 megawatts, generating constant mechanical noise from chillers, cooling towers and ventilation systems, and placing battery banks and diesel generators on Flame Zone land — infrastructure that runs continuously regardless of stated business hours.”The Katoomba campaign is part of a growing national movement. Some 60,000 Aussies have signed separate petitions opposing data centre and AI infrastructure proposals.‘Diabolical idea’On Friday, it was revealed the Blue Mountains campaign had been successful. MAK Urban Group general manager Mohammad Hammoud confirmed the developer would be withdrawing the application, for now at least.“We remain confident that data centre infrastructure can deliver significant economic, employment and digital connectivity benefits to regional communities,” he said in a statement.“However, throughout the assessment process we have listened closely to the views expressed by local residents, community groups and other stakeholders … Rather than continue with the current application, we have chosen to step back and undertake further consideration of the proposal.”The Blue Mountains City Mayor Mark Greenhill welcomed the call, saying it was a “diabolical idea” for the only area in Australia that’s a city within a World Heritage National Park.“Council made its concerns clear, and the community made its concerns clear,” Cr Greenhill said. “This was the wrong proposal in the wrong location.Blue Mountains Mayor Mark Greenhill said the idea was ‘diabolical’.“Data centres are intensive developments. They place significant demands on power and water, and they can raise serious questions about noise, amenity, air quality, fire risk and environmental impact.“In this case, those concerns were heightened by the site’s proximity to homes, a public school and a nearby watercourse.”Cr Greenhill said the withdrawal showed the importance of community voices being heard through the planning process.“I want to thank the residents who took the time to engage with this issue and raise their concerns,” Cr Greenhill said.“The Blue Mountains is a city within a World Heritage Area. Any development proposed here must be appropriate to its setting, respectful of nearby residents, and properly tested against the environmental and infrastructure constraints of our city.”A NSW Parliamentary Inquiry into data centres is currently underway, with findings and recommendations yet to be released.“That inquiry reflects the fact that data centres raise complex issues for communities across NSW,” Cr Greenhill said.“Until those issues are properly understood and addressed, a cautious approach is needed.”MAK is now revisiting the plans, saying the centre would be a “significantly reduced-scale, community-focused development … designed with its surroundings in mind”. It said it would reduce the environmental impact through measures such as low-carbon construction materials and heat capture.AI giants spot data centre opportunity in Australia The call comes as AI behemoths look to build increasing numbers of centres in Australia due to its abundance of clean energy resources and stable society.Recent construction numbers released by the ABS show there has been a whopping $83.4 billion spent on construction in the space of three months. It’s the second-largest quarterly outlay in Australia’s history.A map shows where data centres are in Australia. Picture: Data Center MapFor comparison, the value of residential building work is falling sharply and accounts for just $27 billion of that overall number.OpenAI co-founder Sam Altman told a Sydney conference in May that Australia would “be in the very top few places in the world in terms of what’s possible”.“Australia has among the best natural resources and abundant clean energy [stores] in the world, and if Australia wanted to become a data centre capital of the world, it would certainly be able to,” he said.The Australian government has been working with OpenAI and its major rival Anthropic over the past year to attract data centre investment. OpenAI has said it will be the major customer of a $7 billion data centre, being constructed by ASX-listed NextDC, which will be the biggest in the southern hemisphere.However, the pushback has been significant amid the massive demand the centres will place on the nation’s energy over the next 15 years.You only need to look to the US, where at least $4.2 trillion will be spent on AI infrastructure by 2028, to see how residents are reacting to having data centres in their backyards.Residents in three small US cities have filed lawsuits against data centres, alleging they suffer from noise and vibration akin to the low-frequency thrum of an air conditioner and the rhythmic pulse of a subwoofer, The New York Times has reported.New York state this month passed a one-year moratorium on large data centres. At least four other areas in the US have brought in temporary bans on construction to give governments time to establish guidelines.CEO of OpenAI Sam Altman. Picture: AP Photo/Julia Demaree NikhinsonA shocking report in May, commissioned by Greenpeace Australia Pacific and an independent expert, found the rollout of power-hungry data centres needed to sustain AI will derail the country’s transition to renewable energy, with experts calling for an urgent moratorium on new centres.“Australia is completely unprepared for the magnitude of impacts of the AI-driven data centre frenzy,” said Joe Rafalowicz, Head of Climate and Energy at Greenpeace Australia Pacific.“Data centres are being rolled out at a feverish pace, with some of the largest planned for Australia consuming as much energy as Adelaide.”More Coverage‘So racist’: Icon thinks Pauline is a ‘pelican’Samantha MaidenAus signs pact curbing China’s Pacific influenceJoseph Olbrycht-PalmerThe report said Australian Energy Market Operator data shows data centres will double in their proportion of total energy demand by 2040, growing from three to six per cent of the country’s total energy use in a low growth scenario.In a high-growth scenario, the demand for energy will surge six and a half times, soaring from two to 13 per cent of the country’s total energy use by 2040.This is more than the total load from electric vehicles or all electrification of connected households.Join the conversationAdd your comment to this storyTo join the conversation, please log in. 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