NSW data centre reform program suffers further procurement problems

THE NSW government's data centre reform program has suffered another blow, with a second candidate withdrawing from the tender process.

"The department cannot respond to questions while the procurement process is under way,' a Department of Services, Technology and Administration (DSTA) spokesman said.

A consortium led by financial player Gresham is the latest to pull out. The group includes Telstra, Technical Real Estate, Hurley Palmer Flatt and AGL.

In November The Australian reported that Plenary Group Unit Trust, which had teamed up with property developer Watpac, was the first to exit the tender exercise.

Three candidates are left -- Global Switch, Leighton Contractors and Macquarie Capital. All submitted bids by February 21, after the original January 31 deadline was extended.

The ambitious but oft-delayed project was meant to consolidate 130 state government data centres into two facilities, with the departments of education and health as anchor tenants.

Studies by the NSW DSTA had predicted greenhouse emissions avoided by the unified data centres could equate to taking 7500 cars off the road every day.

The government had invited the five shortlisted tenderers to bid for two data centres -- in Sydney and the Illawarra region.

According to the expression of interest documents, contracts were meant to be exchanged in 2010 with construction (if required) commencing the same year. Facilities were to be commissioned and fully operational in 2011.

As previously reported, freedom of information documents have shown the government is aiming for a March 25 announcement -- one day before the election.

The state opposition has vowed to honour the data centre contracts should it come into power after the March 26 poll. However, it also plans to explore cloud computing opportunities.

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