Data centre industry welcomes NSW government’s principles-based approach
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The news: Data centre developers have welcomed the New South Wales government’s commencement of consultation on how to best implement the federal government’s set of five high-level expectations for the sector.
The state government’s Investment Development Authority also announced the $51.9 billion worth of data centre projects it will help accelerate. It noted that $40.7 billion worth of data centre and technology proposals were rejected for being “premature or overly speculative”.
The context: On Monday, the federal government released a set of five expectations that data centre developers will need to abide by, which were panned by some for being too vague.
Industry group Data Centres Australia welcomed the consultation paper and the NSW government’s move to introduce a set of five principles that aim to facilitate “a conversation about both data centre investment and mitigating the potential impacts on the community, other industries, and the environment”, according to the consultation paper.
Data Centres Australia CEO Belinda Dennett said the sector is already acting in line with the proposed principles “driven by existing regulation, by voluntary commitments or our members and their customers, and by the business model that ensures minimising resource use is a commercial reality”.
Meanwhile, Equinix Australia managing director Guy Danskine said the “opportunity now is to align policy, planning and investment so that digital infrastructure can grow alongside the energy transition”.
“Consistency between state and federal frameworks, alongside faster and more predictable approvals, will be critical. With the right settings, data centres can continue to underpin Australia’s digital economy while contributing to long-term energy resilience and national capability,” Danskine said.
Consultation will run over the next six weeks.
The state’s Investment Delivery Authority also named the 15 data centre projects that it will help with fast tracking development approvals and delivery. This includes projects proposed by NextDC, Stockland, Microsoft, Goodman Property Services, AIMS Capital Managerment, Lane Cove DC Alliance, KNBDC SYD4 and STACK Infrastructure.
What they said: “The scale of investment endorsed through the Investment Delivery Authority reflects strong private sector confidence in NSW as a home for this digital infrastructure,” NSW Treasurer Daniel Mookhey said.
“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.”
The source: NSW government media release
