Data centre developers who refuse to fund their own water and energy supply will be locked out of NSW’s new fast-track approval pathway, cutting assessment times from two years to 75 days.
Revealed on Monday, the NSW Data Centre Policy Framework will provide a streamlined assessment pathway for data centre projects that meet six principles, including “world-class environmental and efficiency standards”.
It will also be required that the data centres do not impose a “net cost” to consumers or communities, fund additional water and energy supply, “enhance local community infrastructure and amenity”, invest in the supply chain, and commit to training and jobs.
NSW Treasurer Daniel Mookhey said data centres would use “more and more recycled water” and would help the government “pipe more renewable energy”.
“Data centres need to pay their own way,” he said.
“They need to bring additional power and additional water to offset the demand but also to pick up some of the slack that’s otherwise would fall to households.”
The NSW parliament probed the impact of data centres in NSW earlier this year, with hearings until July.
The NSW new laws will only drive data centre investment away from Sydney and NSW unless it is decided to build the data centres in regional areas.