New South Wales Manages $51.9 Billion Data Centre Surge

The Government of New South Wales is managing a surge in data centre investment driven by the global generative AI boom, with 15 projects totaling $51.9 billion currently progressing through the Investment Delivery Authority. Minister for Planning Paul Scully announced that new facilities, particularly in the Illawarra region, must undergo full merit assessments. These reviews will prioritize renewable energy and water efficiency, with the government specifically encouraging the use of recycled sewage.

Potential development sites include Port Kembla, Albion Park, and Unanderra. While the 2026 Intergenerational Report identifies Australia as a primary target for this investment, the Australian Computer Society warns that the state faces a critical workforce shortage. The organization estimates New South Wales requires 75,500 additional tech workers by 2035 to prevent investment bottlenecks.

To mitigate these risks, Minister for Skills, TAFE and Tertiary Education Steve Whan highlighted a $3.46 billion training budget. This includes an $11 million joint state-federal investment to establish a National TAFE Centre of Excellence in Digital. These measures aim to ensure the local labor market can support the rapid expansion of digital infrastructure.