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Australia data centre inquiry finds inadequate checks, stops short of moratorium
A New South Wales inquiry found that data centre approvals do not adequately account for the combined pressure facilities can place on water, electricity and infrastructure. It called for a state-wide strategy and better coordination, but stopped short of recommending a halt to new approvals, despite opposition from its chair.
The report warned that existing guidelines may underestimate future power demand and water constraints, and that facilities clustered together could intensify local pressures. Committee members voted 6-1 to remove proposed state and national moratoriums; chair Abigail Boyd, of the Greens, was the sole member who supported keeping them. The debate comes as data centre projects face growing community resistance and major developments await approval in the state.
In short
- NSW found data centre checks miss cumulative impacts.
- The inquiry called for a strategy, not a moratorium.
- Its chair opposed removing proposed approval pauses.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A moratorium could prevent further approvals while authorities assess the combined effects of data centres on water, electricity and infrastructure. Supporters may argue that existing guidelines underestimate future demand and that clustered facilities could cause lasting local strain, so a pause would provide time to set adequate safeguards before more projects proceed.
The case against
A moratorium could delay investment and prevent projects from proceeding even where their impacts can be managed. Those opposing a blanket halt may argue that a state-wide strategy, better coordination and stronger assessment of cumulative impacts address the inquiry’s concerns while allowing decisions to reflect local conditions.