Opinion
13 September, 2026
Opinion: A Data Centre Is More Than A Warehouse
Although government welcomes data-centre investment, our community must know who pays for power, water, roads and risk.
Although government welcomes data-centre investment, our community must know who pays for power, water, roads and risk.
Australia needs data centres. Data centres support everyday services, research and economic activity. Sydney metropolitan area has 27 data centres. Regional NSW has 12 data centres.
Additionally, there are 19 data centre proposals before the NSW government valued at $50.3 billion.
The recent Federal government’s inquiry into data centres has stimulated debate in the Southern Highlands. A data centre may look like a warehouse, but it is nothing of the kind. Behind its windowless walls sit computers that draw enormous amounts of electricity and water.
The Australian Energy Marketing Operator (AEMO) reports that around 165 data centres nationally consumed about 3% electricity in the National Electricity Market in 2025-26. It forecasts that data centres could account for around 13% by 2035-36.
Growth on that scale raises accountability questions. Asking such questions is not hostility to progress - it is an act of responsibility.
Around 60% of a data centre’s electricity is used by the computers. About 30% is used for cooling, depending on the efficiency of the system. The remainder is used for storage, networking and power conversion.
What infrastructure costs will the community bear? Is the water source secure in dry years? What permanent jobs will remain after construction? How will noise, traffic, air quality, biodiversity and emergency risks be managed?
Who should meet the costs? The answer is obvious. It must be the data centre developers, not the community.
Moss Vale’s first data centre has been built. It uses grid electricity. The owners claim that it has 1 million litre water tanks for harvesting rainwater that supply the cooling system.
Regional communities should not be passive hosts. Councils and residents need early engagement, independent technical information and a genuine opportunity to test the evidence.
The Southern Highlands is our home. It is where families build their lives, small businesses invest their savings, and neighbours depend on shared roads, reliable power and secure water.
The Southern Highlands is not opposed to progress that enriches our lives. But public trust of government begins with it listening to the community.
Behind every megawatt and every planning document are households and lives that must never be reduced to a statistic. Progress is desirable only when the community bearing its impact also shares its benefits.
Dr Raymond Khoury PhD
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