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Cloud over A$200 million data project: another bidder withdraws

The NSW's data centre reform project, aimed at injecting A$200 million-plus and hundreds of jobs into the state economy, continues to unravel, with another prospective builder dropping out. Global Switch has become the latest to quit the tender process, which has turned into a two-horse race between consortium leaders Leighton Contractors and Macquarie Capital. It is news that should have Leighton and Macquarie rejoicing, but they are now waiting on tenterhooks as the new Barry O'Farrell-led Coalition government decides on the tender's fate.

The previous Labor government wanted to consolidate 130 data centres into two facilities where the departments of education and health would be anchor tenants.. Labor had earmarked Sydney and the Illawarra for the data centres. And the tender, unlike the expression of interest, made it mandatory for a participant to have a presence in both locations. Sources said Global Switch did not comply with the mandatory location requirement, as it only had facilities in the Sydney inner-city suburb of Ultimo.

Source: The Australian

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