UPDATE: The New South Wales (NSW) government has just granted approval for a massive $3.1 billion data centre at Marsden Park, marking the southern hemisphere’s largest facility of its kind. Announced by NSW Planning Minister Paul Scully today, this project is poised to reshape Australia’s digital infrastructure landscape and create hundreds of jobs.
This urgent development comes as part of a larger push for digital infrastructure jobs across Australia, with the NSW government looking to enhance its competitive edge in the tech sector. The approval arrives just one day after Victorian Premier Jacinta Allan vowed to intensify efforts to attract data centre jobs in her state.
The Marsden Park data centre will feature six four-storey buildings with a total capacity of 504 megawatts, enough energy to power approximately 140,000 homes. Despite objections from local authorities regarding planning and engineering aspects, the project received rapid approval under the Minns government’s state significant development pathway.
CDC, the company behind the project, has committed to sourcing up to 99 percent of its energy from renewable sources by 2030. They plan to implement advanced cooling systems that will use only 0.01 liters of water for every kilowatt-hour of energy consumed. However, a preliminary greenhouse gas emissions report cautioned that the centre would initially exceed 25,000 tonnes of CO2 emissions as it draws power from the NSW electricity grid.
“This $3.1 billion hyperscale data centre will be a powerhouse for Australia’s future digital economy,” said Scully. “It showcases how digital infrastructure can be delivered sustainably.”
The project is expected to create 220 construction jobs and 265 operational jobs, significantly contributing to the region’s economy. It aligns with the growing demand for AI-ready digital infrastructure, a key area identified by the Productivity Commission to boost national productivity.
In a parallel development, Industry Minister Tim Ayres is set to release a comprehensive plan aimed at bolstering Australia’s data centre sector. This initiative will also address the emerging risks associated with AI while attracting international investments in data centres and research.
Currently, Victoria hosts around 40 data centres, accounting for approximately 30 percent of Australia’s data centre infrastructure, while NSW leads with 90 data centres, valued at an estimated $30 billion sector share.
NSW Treasurer Daniel Mookhey called the approval an “exciting step forward” for digital infrastructure, emphasizing the importance of such investments in maintaining NSW’s position as a national innovation leader. Meanwhile, Anoulack Chanthivong, NSW’s Minister for Innovation, Science, and Technology, highlighted the critical role of data centres in supporting both businesses and individuals throughout the state.
As Australia accelerates its digital transformation, the approval of the Marsden Park data centre signals a pivotal moment for the tech industry, with industry experts encouraging further investments in digital infrastructure to meet growing global demands.
With ongoing developments in this space, stakeholders will be watching closely to see how the project unfolds and its implications for the broader digital economy in Australia.
