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In Australia, a data center boom is built on vague water plans
In Sydney, authorities are approving data centers without clear water usage plans, raising concerns about resource competition. Since expanding their planning powers in 2021, the New South Wales government has approved 10 applications, involving major firms like Microsoft and Amazon, leading to significant construction spending but potential strain on Sydney's water supply.
Key points
- Sydney authorities approved 10 data center applications without measurable water use reduction plans.
- The New South Wales government expanded its planning powers in 2021, allowing for faster approvals.
- The data centers will lead to $4.35 billion in construction costs but could use up to 9.6 gigaliters of water annually.
- This water consumption represents nearly 2% of Sydney's maximum water supply, raising concerns among residents.
Why it matters
- The surge in data centers aligns with the 2025 trend of increasing digital infrastructure demands.
- Water usage by tech industries is becoming a critical issue in urban planning amid climate change considerations.
- Past experiences in other cities have shown the potential conflicts between tech industry growth and resource management.
The rapid growth of data centers in Sydney underscores the urgent need for sustainable resource management practices to ensure equitable access to water for residents.