8 May 2026
The Australian Sustainable Built Environment Council (ASBEC) welcomes the opportunity to provide feedback on the NSW Data Centre Consultation Paper. ASBEC supports the NSW Government’s recognition that data centres are becoming increasingly important enabling infrastructure for Australia’s digital economy, including cloud computing, artificial intelligence, telecommunications, healthcare, finance and government services.
ASBEC recognises the significant economic opportunities associated with data centre investment in New South Wales, including support for digital industries, innovation, productivity and the broader transition to a digital economy.
However, the scale and pace of growth also present significant challenges for energy systems, water security, infrastructure planning, emissions reduction and community confidence.
The key policy challenge is therefore not whether NSW should support data centre growth, but how to ensure that growth occurs in a coordinated, transparent and sustainable way.
ASBEC supports a systems-level approach that:
- Aligns data centre growth with renewable energy and infrastructure delivery
- Ensures fair and transparent infrastructure cost allocation
- Supports water resilience and circular economy outcomes
- Maintains strong environmental and community safeguards
- Encourages nationally aligned sustainability and reporting frameworks
- Maintains long-term social licence for the sector.
Done well, data centres can support Australia’s digital and clean energy transitions simultaneously. Done poorly, they risk infrastructure strain, increased emissions, reduced public confidence and unintended long-term costs for communities and consumers.
Read the full submission here