Datacentres are rapidly growing in Sydney, but this expansion is causing serious problems for local communities. Recent discussions during a state inquiry have highlighted concerns about the impact on housing, power supply, and the environment.
Many councils are speaking out. For instance, Lane Cove is worried about increasing blackouts linked to nearby datacentres. The noise from these facilities can also disturb both residents and wildlife. Similarly, the City of Ryde noted that datacentres are competing with opportunities for new homes, especially in areas well-served by public transport.
A significant issue is the pressure datacentres place on local water supplies. Penrith city council is calling for a pause on new approvals until the effects on water and power are fully understood. The Western Sydney Regional Organisation of Councils pointed out that the combined impact of multiple datacentres often goes unnoticed during project evaluations. They argue that without a coordinated plan, growth in this sector could worsen existing issues for electricity, water, and local environments.
Jess Miller, the deputy lord mayor for Sydney, shared alarming forecasts. If all proposed datacentres are built, they could consume around 4.4 gigawatts of power—enough for 10 million households—and use up to 25% of the city’s drinking water by 2035. This translates to a daily water need of about 250 million litres, an amount equivalent to the Sydney Desalination Plant’s total output.
The datacentre industry recognizes these concerns. Data Centres Australia noted that their water and energy needs primarily come from cooling mechanisms. They are investing in renewable energy and want to move away from using drinking water. However, they face challenges around costs and supply. They suggested that using recycled water could help, but it needs to be available at a reasonable price.
The federal government has started to address these issues by releasing “national datacentre expectations.” Local communities are increasingly demanding that datacentres act responsibly and contribute positively, rather than just extracting resources.
In recent months, conversations on social media reflect growing community unease. Many residents are expressing their fears about a future dominated by datacentres, where crucial resources are drained without adequate benefits. The call for better planning is stronger than ever.
As the inquiry continues, it is clear that the balance between technological growth and community needs is delicate. The future of datacentres in Sydney will depend on how well these issues can be addressed.
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