Business
27 March, 2026
NSW Backs Data Centre Surge
A major expansion of data centres across New South Wales has been approved — but one project is being kept secret.
A major expansion of data centres across New South Wales has been approved — but one project is being kept secret.
The Minns Labor Government has confirmed 15 data centre projects worth $51.9 billion will progress through the state’s Investment Delivery Authority.
One of those projects has not been publicly identified, with the government stating it has been withheld due to “commercial sensitivities”.
All other approved projects are located in western Sydney growth areas, including Blacktown, Penrith, Fairfield, Ryde and the Hills Shire.
There are no new confirmed projects in our readership area.
The policy push is being led by NSW Premier Chris Minns and aligns with the Federal Government under Prime Minister Anthony Albanese, which is backing the expansion of data and AI infrastructure.
NSW already has about 90 data centres operating, with investment in the sector growing rapidly.
The government has released a consultation paper to manage future development, focusing on energy use, water demand and infrastructure capacity.
Data centres are high energy users and require significant cooling, placing pressure on electricity and water systems.
Treasurer Daniel Mookhey said the growth needed to be carefully managed, including impacts on “energy and water use, infrastructure capacity and the long-term interests of NSW households and businesses”.
Mookhey added that the Minns Government is "only interested" in working with proponents who have "a long-term commitment to both this state and their social licence."
The consultation is open for six weeks.
The consultation paper can be accessed below.
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