Blog

Why This Matters for Western Sydney 

Greater Western Sydney is home to more than 2.7 million people and remains one of Australia’s fastest-growing regions. It is already carrying substantial growth pressure in housing, transport and essential services.

At the same time, industrial precincts such as Eastern Creek, Huntingwood, Erskine Park and emerging Aerotropolis employment lands are increasingly attracting data centre investment.

This raises an important question:

If Western Sydney is helping power the digital future, how do local communities share in the benefits while avoiding disproportionate impacts?

The Core Issues Raised by GWSAN 

Our submission highlights that data centres should not be viewed only as technical buildings or standard industrial uses.

They are high-demand strategic infrastructure with significant cumulative impacts.

1. Electricity Demand and Network Pressure

Data centres operate continuously and require substantial electricity to power servers and cooling systems.

Large facilities can consume electricity comparable to tens of thousands of households. As multiple centres cluster in one region, cumulative demand becomes a critical planning issue, particularly during summer peak periods when Western Sydney households already experience high cooling demand.

2. Extreme Heat and Climate Vulnerability

Western Sydney already records significantly higher temperatures than coastal Sydney during summer heatwaves.

Temperature differences of 6 to 10°C between Western Sydney and eastern Sydney can occur during extreme heat events, with Penrith, Blacktown and Liverpool regularly among the hottest areas in the metropolitan basin.

This means any major infrastructure with heat emissions or increased energy demand must be assessed through a climate resilience lens.

3. Water Use and Cooling Systems

Depending on the cooling technology used, some data centres may require significant water resources.

In a region that experiences drought cycles and heat stress, water efficiency and transparency around cooling systems are important public interest issues.

4. Cumulative Impacts of Clustering

One of GWSAN’s strongest concerns is that planning approvals are typically assessed project-by-project, while Western Sydney is experiencing multiple facilities across several precincts.

Without regional-level analysis, it becomes difficult to understand the combined impacts on:

• electricity infrastructure

• water resources

• urban heat conditions

• long-term infrastructure capacity

• land use balance

Why Transparency and Trust Matter

Large-scale infrastructure decisions work best when communities understand what is being proposed, why it is being located in their region, and how impacts will be managed.

Too often, residents hear about major developments late in the process or receive highly technical information that is difficult to interpret.

That can create avoidable distrust.

For projects of this scale, communities deserve clear communication around:

• projected energy demand

• cooling systems and water use

• traffic and construction impacts

• long-term employment benefits

• environmental safeguards

Better transparency leads to better planning outcomes and stronger public confidence.

The Opportunity Beyond Risk 

While much of the debate focuses on impacts, data centres also present an opportunity if planned strategically.

Western Sydney could leverage this investment to become a leader in the future economy through:

• digital skills pathways for young people

• partnerships with TAFE, universities and schools

• local technology and cybersecurity employment pipelines

• renewable energy and battery innovation

• smarter industrial precinct planning

With the right settings, digital infrastructure can support not only servers and storage, but jobs, skills and regional capability.

GWSAN Recommendations to the Inquiry 

Our submission calls for five practical reforms.

1. Develop a Statewide Data Centre Strategy

NSW should have a strategic framework guiding where data centres are best located, taking into account infrastructure capacity, climate risk and regional equity.

2. Introduce Cumulative Impact Assessments

Where multiple facilities are proposed in the same region, planning systems should assess combined impacts rather than isolated site impacts.

3. Require Heat Resilience Assessments

Approvals should demonstrate how facilities minimise local heat impacts in already heat-vulnerable areas.

4. Improve Infrastructure Transparency

Public reporting should include projected electricity demand, water usage and cooling technologies.

5. Support Host Communities

Where strategic digital infrastructure is concentrated in specific communities, governments should ensure local investment in resilience measures such as tree canopy, cooling and community infrastructure.

A Bigger Question About Fair Growth 

This inquiry is ultimately about more than data centres.

It is about how NSW manages growth and distributes the benefits and burdens of emerging industries.

Western Sydney has long hosted a significant share of metropolitan infrastructure. As the digital economy expands, that pattern should evolve into a fairer model where host communities receive tangible long-term benefits.

GWSAN’s Position

We support innovation.
We support digital infrastructure.
We support economic growth.

But growth must be planned, transparent and fair.

Western Sydney should not simply provide land, power and strategic location advantages while others capture the long-term gains.

🔗 Related: The Fair Share Framework: A New Way to Fund Infrastructure

Final Thought 

The NSW Parliamentary Inquiry is an opportunity to set a smarter precedent.

One where digital infrastructure is matched by strategic planning.
One where host communities are recognised.
And one where Western Sydney helps power the future while fully sharing in its benefits.

What you can do

• Join the conversation: Share your views on our LinkedIn page.
  
  

• Contact decision-makers: Send this article to your local councillor or MP to highlight community support for smarter housing options.
  
  

• Stay informed: Sign up for our updates to get the latest on housing policy changes, community forums, and advocacy campaigns.