BREAKING: New South Wales has just approved the construction of a massive $3.1 billion data centre in Marsden Park, Sydney, marking a pivotal moment for Australia’s digital infrastructure. Announced by NSW Planning Minister Paul Scully on October 13, 2023, this development is set to be the largest data centre in the southern hemisphere, reflecting a surge in demand for digital services.
This urgent approval comes amid significant federal initiatives aimed at boosting the tech sector, with Victorian Premier Jacinta Allan also promising to pursue data centre jobs aggressively. The Marsden Park facility, developed by CDC, will feature six four-storey buildings with a staggering capacity of 504 megawatts, equivalent to the energy usage of 140,000 homes.
The project, expected to create 220 construction jobs and 265 operational jobs, is designed to meet the growing demand for artificial intelligence-ready digital infrastructure. This is a critical component identified by the Productivity Commission to enhance national productivity.
Despite the excitement, the project has faced scrutiny. The Blacktown City Council previously objected based on engineering and planning concerns. However, the approval process was expedited through the Minns government’s state significant development pathway, allowing for a decision within just 12 months.
CDC has committed to sourcing up to 99 percent of the centre’s energy from renewable sources by 2030, utilizing advanced air-based cooling and water reuse technologies. Notably, the facility is projected to initially emit over 25,000 tonnes of CO2, a figure that is expected to decline as the NSW electricity grid undergoes decarbonization.
Officials from Sydney Water stated that they can service the site, albeit with a limited supply of 14 litres per second. The anticipated influx of digital infrastructure is vital for supporting businesses and individuals across New South Wales.
Industry Minister Tim Ayres is set to unveil the Albanese government’s strategy to attract international investment in data centres and research and development, with further announcements expected soon. This plan aims not only to reap economic benefits but also to address the risks associated with emerging AI technologies.
Victoria currently leads Australia with 40 data centres, comprising about 30 percent of the sector, while NSW holds the majority with 90 data centres, representing 56 percent of the $30 billion industry.
“This $3.1 billion hyperscale data centre will be a powerhouse for Australia’s future digital economy,” Scully declared, emphasizing the importance of sustainable digital infrastructure. NSW Treasurer Daniel Mookhey called the approval an exciting step forward, reinforcing the state’s position as a leader in technological innovation.
In an era where private capital expenditure is surging—evidenced by a 6.4 percent rise in the September quarter—this data centre approval signals a robust commitment to advancing Australia’s digital landscape. The Australian Bureau of Statistics has reported that investment in data centres has skyrocketed, driving a notable increase in capital expenditure across the information media and telecommunications sectors.
As this story develops, all eyes will be on how this initiative shapes the future of digital infrastructure in Australia and its potential to attract further investments. Expect more updates as further details emerge from the government and stakeholders involved in this transformative project.
