Sydney Approves 10 Data Centers Without Measurable Water Plans

Sydney authorities approved 10 data centre applications without requiring measurable water usage plans, raising concerns about the sector's growth and potential water shortages. The centres, owned by companies like Microsoft and Amazon, are expected to use up to 9.6 gigalitres of clean water annually, or nearly 2% of Sydney's maximum supply. Fewer than half the approved applications provided projections of water savings. The state planning department confirmed the water projections but did not comment on the measurability of the plans.

Sydney authorities have approved 10 data centre applications without requiring measurable water usage plans, sparking concerns about the sector's growth and potential water shortages. The centres, owned by major tech companies like Microsoft and Amazon, are expected to use up to 9.6 gigalitres of clean water annually, representing nearly 2% of Sydney's maximum supply Exclusive-In Australia, a data centre boom is built on vague water plans^[1].

The New South Wales state government has approved all 10 data centre applications it has ruled on since expanding its planning powers in 2021. These centres are projected to bring in a total of A$6.6 billion ($4.35 billion) in construction spending Exclusive-In Australia, a data centre boom is built on vague water plans^[1]. However, fewer than half of the approved applications provided projections of water savings. The state planning law requires developers to demonstrate how the development minimizes water consumption, but does not mandate specific projections or measurable savings Exclusive-In Australia, a data centre boom is built on vague water plans^[1].

The state planning department confirmed the water projections but did not comment on the measurability of the plans. Data centres could account for up to a quarter of Sydney's available water by 2035, according to Sydney Water projections Exclusive-In Australia, a data centre boom is built on vague water plans^[1]. Sydney's drinking water is limited to one dam and a desalination plant, making supply increasingly tight as the population and temperatures rise. In 2019, Sydney's 5.3 million residents were banned from watering gardens or washing cars with a hose due to drought and bushfires Exclusive-In Australia, a data centre boom is built on vague water plans^[1].

The rapid growth of data centres, driven by the increasing use of AI and cloud computing, has prompted concerns about water usage. While some developers have committed to reducing water reliance, the lack of measurable plans raises questions about the sustainability of this growth. For instance, only three of the 10 approved data centre applications provided projections of water savings Exclusive-In Australia, a data centre boom is built on vague water plans^[1].

Sydney's suburban councils have also expressed concerns about the competition for limited water supply. Damien Atkins, a member of Blacktown council, noted that many centres have been built without much discussion. Lane Cove council has requested a return of approval powers to local government, citing water usage and other concerns Exclusive-In Australia, a data centre boom is built on vague water plans^[1].

In conclusion, while the data centre boom in Sydney presents significant economic opportunities, it also raises serious concerns about water sustainability. The lack of measurable water usage plans and the potential for increased competition for water resources highlight the need for more stringent regulations and better planning.