Sydney Councils Raise Alarm Over Expanding Datacentre Industry

Several councils in Sydney have expressed significant concerns regarding the rapid expansion of datacentres, which they fear could lead to blackouts, housing shortages, and health impacts on local residents. These issues were highlighted in submissions to the New South Wales datacentre inquiry. The Lane Cove Council reported an increase in blackouts attributed to the proliferation of datacentres, stating that the noise produced by these facilities could be disruptive to both residents and wildlife. Additionally, health concerns have been raised regarding the use of diesel generators for backup power.

Sydney Councils Raise Alarm Over Expanding Datacentre IndustryThe Guardian

The City of Ryde noted that a cluster of twelve datacentres in Macquarie Park is competing with potential residential developments in areas well-served by public transport. One proposed datacentre site, located near a metro station, could have supported new housing in a strategically desirable location. Penrith City Council has called on the state government to pause further datacentre approvals until the impacts on utility services, particularly water and power, are fully understood.

Sydney Councils Raise Alarm Over Expanding Datacentre IndustryThe Guardian

The Western Sydney Regional Organisation of Councils emphasized that the cumulative effects of noise, heat, and emissions from datacentre clusters are often overlooked in the approval process. Jess Miller, deputy lord mayor for the City of Sydney, stated that if all proposed datacentres are built, their power requirements could equal those of 10 million households and consume up to 25% of the city’s drinking water by 2035. The additional water use required is estimated at 250 million litres per day by 2035, equivalent to the total production capacity of the Sydney Desalination Plant.

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Data Centres Australia acknowledged the industry's electricity and water requirements related to cooling, noting that developers are investing in power purchase agreements for renewable energy. The industry expressed a commitment to reducing reliance on drinking water but cited cost and supply barriers. They suggested that non-potable recycled water could represent an opportunity for datacentres, contingent on Sydney Water making it available at an affordable price.

The GuardianSydney Councils Raise Alarm Over Expanding Datacentre Industry

The federal government has released a set of “national datacentre expectations” to address growing concerns about energy and water use. Public hearings for the NSW inquiry are scheduled for May, focusing on the implications for housing, land use, and local communities. The Committee for Sydney has pointed out the lack of an overarching spatial strategy for datacentre deployment, with increasing calls from communities and local councils for datacentres to act as responsible corporate citizens.

Sydney Councils Raise Alarm Over Expanding Datacentre IndustryThe Guardian

Critics argue that the current trajectory of datacentre development is extractive, taking more resources than they contribute to local communities. Local councils have voiced their concerns about the sustainability of such rapid expansion, emphasizing the need for coordinated planning to mitigate the adverse effects on electricity networks, water systems, and local environments.

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• “The Western Sydney Regional Organisation of Councils said the cumulative impact of noise, heat and emissions from datacentre clusters was rarely considered in approvals for individual projects.” — Western Sydney Regional Organisation of Councils

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• “The prevailing narrative from many of these stakeholders is that datacentres are extractive; they take more than they give when it comes to energy, water, land.” — Committee for Sydney

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