NSW fast-tracks data centers with new guidelines, but community groups raise resource concerns

The New South Wales government has introduced a new initiative to expedite the approval process for data center developments, provided builders comply with a set of newly established guidelines. These requirements focus on environmental sustainability, energy efficiency, and ensuring no net cost to consumers. Developers must also commit to increasing water and energy supply, enhancing local community infrastructure, investing in future industries, and supporting job creation through skills training.

“

We have to replace a lot of old energy sources like coal fire power. We do and should replace that with clean, green, renewable power.

In exchange for meeting these standards, the government promises to assess applications within a strict 75-day timeframe. Treasurer Daniel Mookhey announced the policy, highlighting its aim to match the growing investment in data centers with increased investment in renewable energy and water infrastructure. He stressed that data center builders will be responsible for funding new clean energy sources, such as renewables, to replace older energy infrastructure like coal-fired power plants, thereby sparing Australian taxpayers from the cost.

“

We want data centre builders to help pay their fair share, so it doesn't just fall to households to pick up the cost.

The framework incentivizes compliance but does not outline penalties for non-compliance. Mookhey warned that builders who choose not to meet the standards risk having their proposals rejected, stating they would be "almost alone" in their decision. Currently, New South Wales has over 60 data centers operating or under construction, with an additional 19 in the planning stages.

“

Those data centre builders that choose not to comply with these guidelines will have to take the risk that their projects are going to get refused.

Despite the government's push, the expansion of data centers faces backlash from community groups. Protesters, including local community organizer Gokulan Gopal, are calling for a moratorium on new builds until the community's concerns are addressed. Key issues raised include the availability of water and power, waste management, the reliability of backup systems during outages, and the potential impact on consumer prices for water and energy.

“

Where is the water going to come from? Where is the power going to come from? How are we going to manage the waste? When the outage happens, what kind of backups are they going to use?