NSW Committee Rejects Data Centre Moratorium Despite Planning Warnings
A New South Wales inquiry found state data centre planning inadequate but voted against a moratorium on new approvals despite warnings of cumulative environmental impacts.
The Public Accountability and Works Committee of the New South Wales Upper House released a report on November 5, 2026, concluding that the state's planning framework for data centres is inadequate. The inquiry found that current guidelines fail to account for the cumulative impact of facilities on electricity, water, and infrastructure, potentially underestimating future power demands.
Despite these findings, the committee voted 6-1 to remove recommendations for a state and national moratorium on data centre approvals, a move driven by Labor and Liberal MPs. Committee chair Abigail Boyd condemned the decision, describing the AI-driven buildout as a "false economy" and a "get rich quick scheme."
The committee's remaining recommendations include legally mandating that data centres supply 100 per cent of their own renewable energy on an hourly basis to avoid reliance on coal and gas. The report also suggests attaching legal and financial liability to AI models across their supply chains and strengthening copyright laws to protect creatives from generative AI.
Similar concerns emerged in the Australian Capital Territory, where the ACT Conservation Council urged its government to implement a moratorium on new and expanded data centre developments. Executive Director Simon Copland argued that these facilities pose significant risks to health and the environment, calling for mandatory closed-loop cooling systems and a ban on developments in ecologically sensitive greenfield sites.
