NSW Government approves another 15 data centre projects

The NSW Government announced last week that 15 data centre projects will progress through the Investment Delivery Authority (IDA), as it releases the NSW Data Centre Consultation Paper to steer the sustainable development of the sector in New South Wales.

The IDA-endorsed projects are collectively worth $51.9 billion and demonstrate the private sector’s interest in investing and building in NSW.

There are already 90 data centres operating in NSW, with the value of data centre investments in the state growing 65% per year on average over the past three years. Data centres now account for 12% of all non-residential building investments.

The state government says it is determined to ensure the NSW economy benefits from this fast-growing demand for cloud storage and the digital economy, while responsibly managing the challenges associated with data centre operations, especially around power and water. To that end it has released the NSW Data Centre Consultation Paper to provide a principles-based approach to managing the opportunities and challenges of data centre investment. The paper’s principles present a framework to guide sustainable and equitable investment that benefits the people of NSW.

Community and industry feedback will help guide decision making, while managing energy and water security, as well as air quality concerns surrounding data centre development.

Today’s announcement follows the IDA’s endorsement of 14 energy projects, collectively worth $34 billion in potential investment, earlier this month. These renewable energy and energy security projects will help accelerate the NSW Electricity Roadmap and support the growth of the digital economy.

The rigorous IDA process did not endorse around $40.7 billion worth of proposals related to data centres and technology, considered either premature or overly speculative.

“New South Wales is a premium destination for data centres but we are only interested in working with proponents who have a long-term commitment to both this state and their social licence,” said Treasurer Daniel Mookhey. “The scale of investment endorsed through the Investment Delivery Authority reflects strong private sector confidence in NSW as a home for this digital infrastructure.

“At the same time, we recognise this growth must be managed responsibly. That’s why we’re releasing a consultation paper to inform a Data Centre Strategy that considers energy and water use, infrastructure capacity and the long‑term interests of NSW households and businesses.”

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