The Minns Labor Government has today announced 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 Minns Labor Government 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.
It's why the Government has today released the NSW Data Centre Consultation Paper to provide a principles-based approach to managing the opportunities and challenges of data centre investment for the economic benefit of the State.
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.
For more information about the Investment Delivery Authority visit https://www.nsw.gov.au/departments-and-agencies/investment-nsw/investment-delivery-authority.
Today's announcement follows and supports the publication this week of the Albanese Government's Expectations for Data Centres and AI Infrastructure Developers document.
To view the NSW Data Centre Strategy consultation paper visit https://www.infrastructure.nsw.gov.au/expert-advice/nsw-data-centre-consultation-paper/
Written feedback is now being welcomed for the next six weeks.
Treasurer Daniel Mookhey said:
"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.
"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.
"I look forward to engaging with industry, stakeholders and the wider community through this consultation process."
Minister for Planning and Public Spaces Paul Scully said:
"NSW is a global destination of choice for data centres. In the past year alone, NSW has approved eight data centre projects worth more than $10 billion including the biggest data centre in the Southern Hemisphere.
"Data centres are important for jobs, data sovereignty and start up creation but we want them to be the best of the best and this consultation paper will help achieve that.
"By consulting with industry and stakeholders, the NSW Government can support future data centre development that is underpinned by strong planning processes which aligns the development with NSW's broader infrastructure and environmental priorities."
Minister for Industry and Trade Anoulack Chanthivong said:
"Data centres are a cornerstone of the modern digital economy, enabling cloud computing, artificial intelligence and other high‑value technology industries.
"Investment in digital infrastructure like data centres is critical to delivering a strong innovation ecosystem, supporting high‑productivity industries and attracting globally competitive investment.
"By releasing the NSW Data Centre Consultation Paper, the NSW Government is strengthening the foundations for innovation, skills development and technology‑led growth across the economy."
