NSW Labor's Pro-AI Strategy Hurts Climate Targets: Report

Australian Greens

The NSW Net Zero Commission's annual report, released today, finds NSW has fallen even further behind on its legislated emissions targets while NSW Labor has been in Government.

The report singles out data centres as a key harm to NSW's emissions reductions obligations.

Current policies will see only a 44 per cent reduction by 2030 and 56 per cent by 2035, according to the Net Zero Emissions Dashboard updated on Wednesday. The gap has widened from the 46 per cent by 2030 and 62 per cent by 2035 expected a year ago, which was in turn worse than when the NSW government first revealed it was on track to miss the targets in 2024.

As stated by Abigail Boyd MP, Greens NSW MLC and Chair of the Public Accountability and Works Committee which is inquiring into Data Centres in NSW:

"I forced the NSW Department of Climate Change, Energy, the Environment and Water to admit that way back in 2024 they formally warned the Minister for Climate Change, Penny Sharpe, that data centre developments were going to directly imperil us meeting our legislated emissions reduction targets. The NSW Labor government, after hearing that advice, decided to put their foot on the accelerator for these environmentally disastrous projects.

"The NSW Labor government is engaged in profound climate vandalism in their pursuit of extra marks on some illusory economic measures, inflated investment figures that will ultimately flow offshore and the appearance of economic prosperity on paper. Meanwhile, the real and profound harms of their decisions will be experienced by local communities.

"The Net Zero Commission has already foundthat NSW income per capita is approximately 18% lower than it would have been without past human-induced climate change, equating to more than $20,000 per year per capita. An economic loss of $180 billion in 2024 alone. These figures dwarf any illusory economic benefit of big tech investment.

Referring to Cloud Carrier's proposed gas-fired power project, to power its planned Southern Highlands Data Centre, Boyd said "Right now, there is a data centre project being considered by the planning system that would, if approved, wipe out the entirety of NSW's projected 2028 emissions cuts. There are 44 data centres in the NSW development pipeline as at 31 March 2026, totalling 11.4 GW - roughly four Eraring coal stations of 2.88GW, or more than double the size of the Central West Orana Renewable Energy Zone of 4.5GW. There is simply not enough renewable energy to serve this demand, while also decarbonising the rest of our society.

"Climate impacts of these projects must be paramount. But right now, the Labor government is choosing big tech and fossil fuel industries, not community health, safety and wellbeing, and locking us into a fossil fuel intensive, climate-disastrous future.

"While big tech is promising us the moon, it could end up costing us the earth. We need a moratorium on AI data centre developments."

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