Lord Mayor Calls for ‘Urgent’ Data Centre Regulations As Lane Cove Residents Speak Out

Lord Mayor Clover Moore is urging the NSW government to develop a statewide planning framework for data centres, which many believe is long overdue.

Moore said land in inner-city Sydney is better suited for other businesses, but data centres are state significant and until state regulations prevent these centres being built here, it is still a growing concern.

“One functional, data centres employ few, and the streets surrounding them become devoid of activity. It does not make sense to sacrifice scarce inner-city land, better allocated to housing or job-rich businesses,” Moore told City Hub.

“Cumulative impacts on local energy networks and water supply should be factored into any new approvals.”

“We welcome a nationally coordinated approach, which will hopefully prevent an all out race-to-the-bottom where states lower standards to attract investment.” Moore said.

Sydney does not have any regulations that prevent developers to be build them in and near residential areas.

Balmain MP Kobi Shetty has spoken out to say that data centres need to be far away from city centres and residential areas. 

“Data centres need to be located away from residential homes, schools, and sensitive bushland or rivers,” Shetty told City Hub.  “It’s the local communities who will pay the price of this poor planning for years to come.”

The responsibility of introducing new rules falls into the state government as local communities do not have the ability to impose new restrictions due to these developments being state significant.

Sydney MP Alex Greenwich has said he supports a state government bill for renewable energy to power these facilities.

“I am concerned about the fast-tracking of 15 [data centres] without the full transparency of their intended use,” said Greenwich.

The Energy Regulator and Sydney Water project that by 2030, data centres in Sydney will consume 11% of our grid-electricity and 20% of our drinking water.

According to the City of Sydney, having dedicated facilities to store, process, and manage digital information is critical for NSW’s financial, professional, education, and technology sectors.

Proposed centre in Lane Cove sparks outrage

A proposed data centre in Lane Cove would come within 16 metres of homes, and residents have furiously spoken out about it.

The developers for the proposed data centre have received strong opposition from local residents and senators.

Senator Sarah Henderson has also spoken out, saying she believes the centre being so close to residences was irresponsible and “completely unacceptable.”

Should NSW follow in Victoria’s footsteps?

In Victoria, data centres are banned in residential areas, have to use renewable energy, and contribute to the community.

The new rules of Victoria’s government plan for sustainable data centres were released on Tuesday.

In NSW, the only regulations placed on these centres by the state government are that builders meet the environmental and efficiency standards, impose no net cost to consumers, and fund additional water and energy.

However, despite having stricter rules, Victoria’s plan is still falling short of expectations.

Victorian Greens spokesperson, Sarah Mansfield, said there was a “huge loophole”.

“If Labor genuinely believes these protections are necessary, they should apply to every data centre in the pipeline,” explained Mansfield.