In brief
- Numerous groups have called on government to pause AI data centre approvals in Australia.
- There are questions about the amount of electricity and water the data centres consume.
Community and environmental organizations are advocating for a pause on the approval of new data centers in Australia, urging authorities to thoroughly assess the environmental consequences of these artificial intelligence hubs.
Sydney Water has reiterated its concerns that data centers could consume up to 25% of the city’s drinking water within the next decade, necessitating increased infrastructure investment to accommodate this demand.
These concerns were highlighted on Friday during the third hearing of the New South Wales government’s inquiry into data centers. The session included testimonies from energy suppliers, local government representatives, and business groups.
As global tech companies strive to fulfill the growing need for AI tools, Australia has emerged as the second-largest recipient of data center investments worldwide.
However, Alexander Hoysted, strategy lead for the Carbon Zero Initiative, emphasized ongoing uncertainties about the electricity and water usage of these facilities. He noted that energy providers have had limited opportunities to evaluate their environmental impact.
“It’s a little bit like a sneeze — it starts slowly and then all of a sudden these issues burst onto the scene very quickly,” he said.
Despite claims data centres’ water consumption had been exaggerated, Sydney Water managing director Darren Cleary repeated the organisation’s forecast that data centres could use up to 25 per cent of the city’s drinkable water by 2035.
“Our forecasts do reflect applications that are coming in that are planning to go ahead and there’s clearly uncertainty when we get towards that 10-year time frame,” he said.
“We have a large new industry developing in west or in greater Sydney that will add a significant new demand to our system.”
Data centres’ commitments to renewable energy should also be examined closely, Greenpeace Australia Pacific campaigner Solaye Snider said, and a moratorium should be placed on approvals until the industry has greater certainty.
“We need to pause, especially on the largest and most energy-intensive proposals right now, because we simply don’t have enough renewable energy readily available,” she said.
“We also want to scrutinise some of the claims that are being made by data centre operators and the data centre lobby around this.”
The Lane Cove Responsible Planning Group also called for a moratorium, with member Paul Trainor telling the inquiry planning regulations were inadequate.
Six data centres were planned for the Sydney suburb, he said, including one within 20 metres of homes and 160m of a school, despite concerns about noise and air pollution.
“If data centres are truly critical infrastructure, they must be planned to a far higher standard and not cluster beside homes, beside schools, beside recreation areas without enforceable statewide planning rules and cumulative impact assessments,” he said.
New regulations should address concerns about their water use, housing and cost recovery, Urban Development Institute of Australia chief executive Stuart Ayres said, but also give developers greater certainty.
“The issue of this inquiry is not whether NSW should accommodate data centres — it should,” he said.
“The question is whether they are planned, serviced and approved within a transparent, disciplined planning framework.”
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