Goodman's Japanese data centre comes under fire following Sydney site setback

Goodman Group, Australia’s largest property firm by market value, faces mounting criticism of what would be its largest data centre project in Japan, just days after it scrapped plans for a similar development in Sydney following local resistance.

The dispute with residents in Japan is part of a broader global backlash against data centres, as local communities raise concerns about their impact on power grids, water supplies and local environments.

For Goodman, the stakes are high. The project is one of the largest foreign-backed digital infrastructure investments in Japan and is expected to become one of the country’s biggest data centre campuses, with an eventual capacity of 1 gigawatt - equivalent to an estimated investment of about 3 trillion yen ($20 billion).


This year, Goodman began construction on the first 50-MW phase of the data centre campus in the city of Tsukuba, about 50 km (30 miles) northeast of Tokyo. The 45-hectare site in the Oho district, with a population of about 20,000, is adjacent to a residential block, a hospital and a nursing home.

Residents said they had little understanding of the project’s scale until huge cranes appeared at the construction site in February and now complain that developers have yet to address concerns via an open public forum.

“The project was originally presented in documents in 2023 as a logistics warehouse, but partway through, the word ‘data centre’ appeared,” said Hiroyuki Yanagimachi, who later formed a residents’ group to seek more information. “That made people deeply suspicious.”

In Japan, foreign developers like Goodman, Singapore’s GLP and London-based Colt Data Centre Services have been racing to build data centres to meet surging demand, sometimes in densely populated neighbourhoods where residents typically have little sway over development plans.

Yanagimachi said his group collected about 800 signatures calling for a public town hall meeting and sent two letters to Goodman requesting an open information session, but had yet to receive a response.

Goodman said in a statement: “Our door remains open to meet the head of the residents’ association and address their concerns and they have our contact details.”

It said it planned to hold an information meeting with residents in a format that would be decided after consultation with municipal authorities.

Some six months after construction began, Goodman held its first information sessions which a few dozen Tsukuba residents attended over two evenings in August. The invitation-only meetings took place at a local restaurant.

Goodman said it is “committed to engaging with residents openly and respectfully, and we will continue to do so.” It also said the company has “exceeded legal requirements and those set out in guidelines.”

In guidelines published in May, the Japan Data Center Council, an industry body of which Goodman is a member, stressed the importance of consultation, saying operators should view engagement as “a forum for discussion and mutual understanding, not a one-sided report.”