Communities across Australia are increasingly voicing opposition to the rapid expansion of data centres, as developments in regional towns and suburban areas spark debate over environmental, economic, and social impacts. The concerns come amid a broader national and global discussion on the sustainability and necessity of data infrastructure amid evolving technology demands.
One prominent example is the Southern Highlands town of Moss Vale, about 90 kilometres southwest of Sydney, where a private company, Cloud Carrier, has proposed a large data centre campus spanning 67 hectares. The project, expected to include up to three data centre buildings with 19 to 20 data halls, would be supported by a sizable 673-megawatt gas-fired power plant capable of powering approximately 70,000 homes or serving industrial-scale energy needs. The scale and energy demand of the facility have alarmed local residents and conservation advocates. Peter Martin, a former investment banker turned conservationist active in opposing previous mining projects, described the rapid escalation of community resistance to data centre developments as “turbocharged” compared to earlier coal-related campaigns.
Concerns raised range from emissions and air quality to water usage and the visual impact on semi-rural landscapes. The NSW Land and Environment Court recently heard appeals against a smaller associated gas-fired plant after local council decisions to block its construction. Community groups worry about infrastructure pressures, including noise, increased traffic, and potential overdevelopment, questioning whether promised employment benefits will materialize and be local.
Opponents also highlight the growing environmental footprint of data centres, including their reliance on gas-powered generation, which some argue offsets gains achieved in shutting down coal plants. Martin and other critics emphasize that data centres’ surge in consumption could undermine emissions reductions achieved in other sectors. Additionally, transparency issues around data centre operators, client demand, and financial stability have raised skepticism. Critics refer to international precedents where technology infrastructure investments became “stranded assets” or failed to meet expected demand, questioning the long-term viability and community benefit of such projects.
Conversely, some local officials and proponents assert that data centres can provide significant economic advantages. In Wagga Wagga, for example, a $150 million data centre development is expected to create around 200 permanent jobs with relatively high salaries, along with numerous auxiliary positions. Deputy Mayor George Davies emphasizes that while the industry is new and the scale unprecedented for many regional communities, public engagement efforts are underway to address concerns about water use, energy demand, and community impact. Local leaders see data centres as potential catalysts for economic diversification, retaining youth populations, and funding public services through developer contributions.
Similar perspectives have been expressed in Queensland’s Western Downs Regional Council, where Mayor Andrew Smith views proposed data centre projects as comparable to past resource-driven economic boosts. Advocates note the critical role of data centres in supporting modern life, from online banking to artificial intelligence, underscoring their inevitability.
The ongoing debate thus reflects a tension between environmental sustainability and regional economic development, compounded by uncertainties surrounding the data centre industry’s future growth and technological evolution. As projects proceed, communities and governments continue to weigh potential risks and rewards, seeking balance amid rapid infrastructure transformation.