Sydney Data Centres Approved Without Water-Saving Requirements
Authorities in Sydney have approved several new data centres without requiring clear plans to reduce water usage. This has raised concerns that the growing number of centres could strain the city’s limited water supply. The New South Wales (NSW) state government has approved all 10 data centre applications reviewed since expanding its planning powers in 2021. These approvals include projects by major companies such as Microsoft, Amazon, and AirTrunk, owned by Blackstone.
Together, these projects involve construction spending of A$6.6 billion (US$4.35 billion). However, they could use up to 9.6 gigalitres of clean water each year. This amount is almost 2% of Sydney’s maximum water supply. Fewer than half of the approved projects included estimates for how much water they might save by using alternative sources.
State planning laws require developers to show how they will reduce energy and water use. Yet, they do not require exact figures for water consumption or savings. Developers must state whether they will use alternatives like rainwater or recycled water, but not how much.
Lack of Measurable Plans Raises Red Flags
The rapid approval of high-water-use facilities has led to worries about future water access. Sydney relies on one dam and one desalination plant for drinking water. With the population growing and climate risks rising, the city’s water supply is under pressure.
According to Sydney Water projections, data centres could consume up to a quarter of Sydney’s available water by 2035. That would be 135 gigalitres each year. These projections assume data centres improve their cooling systems to use less water, though no clear targets have been set.
A spokesperson for the state planning department said all 10 approved data centres had water supply assessments from Sydney Water. Five of the centres gave some detail on how they plan to reduce water use, but the department did not say if those plans were measurable.
Ian Wright, a former scientist with Sydney Water and now an academic, said Sydney already has a gap between water supply and demand. He warned that the rising number of data centres could worsen the problem during future droughts.
Local Councils and Residents Push Back
Many local councils are beginning to question the state’s approach. Blacktown Council, which hosts centres owned by Amazon, Microsoft, and AirTrunk, wants more say in the approval process. Councillor Damien Atkins said many projects were approved with little community input.
In Lane Cove, officials have called for planning powers to be returned to local councils, citing concerns about water use. Ryde Council has asked for a halt to new approvals. It already has five data centres, with six more in planning stages. These 11 centres could consume nearly 3% of the area’s water supply.
On a nearby vegetable farm, Meg Sun worries that rising water demand from data centres could make drought years even tougher. Her family had to stop watering their crops during the 2019 drought. She fears what will happen if water becomes even scarcer.
Among the companies, only a few have provided specific water-saving goals. AirTrunk’s largest facility said it would reduce potable water use by just 0.4% through rainwater collection. Amazon reported it avoids using water for cooling 95.5% of the year. Microsoft projected a 12% water use reduction at one of its approved centres.
Despite these claims, most commitments lack measurable benchmarks. The state government’s current policy only requires that developments include water-saving measures, without defining what those should be.
with inputs from Reuters
