NSW panel recommends 26 stricter data centre rules
Key points
- A parliamentary committee recommended 26 new regulations to tighten environmental and planning rules for data centres in New South Wales.
- The proposals aim to address growing concerns over energy prices, water consumption, and land use across the state.
- Lawmakers noted that the regulatory updates are designed to manage the environmental impact of expanding digital infrastructure.
The New South Wales Upper House Public Accountability and Works Committee recommended 26 regulatory changes to oversee data centre developments.
The recommendations follow a parliamentary enquiry that examined 143 submissions, held five public hearings, and conducted site inspections regarding project impacts.
“The evidence that was obtained in this enquiry made very clear to me as Chair that the current rules are inadequate, that there is no social licence for this development, and that the harmful impacts on energy prices, climate change, water use, and the opportunity cost of this development on misdirected resources and colonisation of strategic lands will be immense and difficult to unwind,” said NSW Legislative Council Member Abigail Boyd.
The enquiry focused on long-term electricity demands, water resources, and community concerns surrounding proposed facilities.
The committee stated that the proposal seeks to ensure future planning frameworks address cumulative environmental impacts.
The state government will review the proposed recommendations before determining any binding legislative updates for operators.
The legislative review comes amid expanding global demand for artificial intelligence infrastructure and localised computing capacity.