NSW Inquiry Considers Tying Data Centre Approvals to AI Ethics

The New South Wales Legislative Assembly held an inquiry on May 1 to evaluate the economic and environmental pressures stemming from the state's 90 data centres. During the proceedings, advocates proposed that planning authorities withhold development approvals until operators can certify that their AI models do not violate copyright laws and are free of stolen work.

Claire Pullen and other representatives suggested that the government use procurement and planning laws to incentivize tech companies to certify ethical data usage. Simultaneously, researchers urged the assembly to tie future approvals to strict sustainability metrics and mandatory commitments to renewable energy to mitigate the environmental footprint of AI infrastructure.

Industry representatives from Data Centres Australia contested these concerns, arguing that the environmental costs of the sector have been exaggerated. Belinda Dennett specifically challenged forecasts claiming data centres would consume 25% of Sydney's drinkable water by 2035, labeling such figures as misinformation and citing national statistics to show that actual water usage remains minimal.