Fifteen data centre projects will move forward in NSW as part of efforts to support digital infrastructure growth while ensuring sustainable development.
The projects have been approved through the Investment Delivery Authority (IDA) process and represent a combined potential investment of $51.9 billion. The approval shows strong private sector interest in building digital infrastructure in NSW.
NSW currently has 90 operating data centres. Investment in the sector has grown by an average of 65 per cent each year over the past three years. Data centres now make up 12 per cent of all non-residential building investment.
The growing demand for cloud storage, artificial intelligence and digital services is creating new economic opportunities. However, data centres also require significant energy and water resources.
A new NSW Data Centre Consultation Paper has been released to guide future development of the sector. The paper outlines principles for sustainable and responsible investment.
The consultation will help address key issues, including energy supply, water use, infrastructure capacity and air quality. Feedback from communities and industry will help shape future decisions.
The approved projects are part of a wider plan to support the digital economy and attract technology investment. Earlier approvals also included energy projects with a combined potential investment of $34 billion, helping strengthen energy supply for future growth.
The IDA review process also found that some proposed data centre and technology projects were not ready to proceed. Proposals worth about $40.7 billion were not endorsed because they were considered premature or uncertain.
The NSW Government said future data centre development should create economic benefits while meeting environmental and community expectations.
The consultation paper will remain open for public feedback for six weeks.