NSW releases Data Centre Policy Framework and Guidelines

The NSW Government has released the NSW Data Centre Policy Framework and Guidelines, setting clear expectations for data centre development across the state.

The framework supports investment while managing impacts on energy, water and the environment. It consists of 3 pillars - Guidelines, regulatory reform to address cost recovery in the energy sector, and an IPART review into water pricing for data centres.

The Guidelines outline 6 principles for data centre projects, including environmental performance, investment in additional supply of water and energy, contributions to community infrastructure, and support for jobs and skills. Projects that meet these measures will receive a commitment to have their developments assessed within 75 days. 

The second and third pillars of the framework are energy regulatory reforms and an IPART review of water pricing arrangements for data centres. These pillars will support future growth while protecting households, businesses and communities from additional costs. Formal consultation is underway to seek public feedback on the energy sector reforms. Read the Consultation Paper. The consultation period will take place from 17 August to 14 September 2026.  

NSW currently has more than 60 data centres operating or under construction, with a further 19 projects in the State Significant Development pipeline valued at $50.3 billion. 

Learn more about the NSW Data Centre Policy Framework and NSW Data Centre Guidelines.