Australia data centre inquiry finds inadequate checks, stops short of moratorium

Australia's most populous state has completed an inquiry into its data centre industry, finding that current approvals processes fall short of assessing the overall impact on resources and infrastructure. The New South Wales cross-party inquiry report, chaired by Abigail Boyd of the Greens party, warns that the data centre boom could strain water, electricity, and infrastructure resources.

The report calls for a comprehensive strategy and better coordination, but stops short of recommending a moratorium on approvals. The tension between developers and communities is particularly evident in Sydney, where a recent smaller project was halted due to community opposition. The report highlights the need for a coherent approach to managing the potential environmental and social impacts of data centres, which are projected to generate $7 trillion by 2030.