Western Sydney at the Epicentre of a New Tech Boom
As Greater Western Sydney emerges as the epicentre of a national data centre boom, leading advocacy group the Western Sydney Leadership Dialogue says steps must be taken now to ensure the region is positioned to leverage a once‑in‑a‑generation opportunity to shape a new digital economy.
The inaugural TechWest Infrastructure Forum brought together NSW Treasurer, The Hon. Daniel Mookhey MLC, and Federal Assistant Minister for Science, Technology and the Digital Economy, Dr Andrew Charlton MP, with more than 300 leaders from global tech giants, data centre operators, business and community representatives to explore the GWS data boom.
Dialogue CEO Adam Leto urged State and Federal Governments to work with the tech sector to allow the region to play a key role in driving the nation’s digital competitiveness, while ensuring the positive flow-on effects are felt locally.
“GWS stands at the epicentre of a tech boom. We want to make sure the billions of dollars of investment in digital infrastructure translates into economic opportunities for local communities – with high‑value jobs, homegrown industry innovation and skills development,” Mr Leto said.
The Dialogue welcomed the new NSW Data Centre Consultation Paper, which was unveiled by the Treasurer at today’s forum, and follows the Federal Government’s recently released Expectations of data centres and AI infrastructure developers.
Also announced at today’s TechWest Infrastructure Forum was news that 15 data centre projects are being progressed through the Investment Delivery Authority – 10 of them destined for Greater Western Sydney.
To date, $6.8 billion in data centre projects have been approved in GWS, and projects worth more than $21 billion in the region are awaiting approval. The Dialogue CEO is calling for a coordinated approach that would benefit Sydney’s fastest-growing region.
“While we understand that there is an urgency when it comes to these sorts of projects, especially given the global AI race, this can’t be just a tick and flick exercise,” Mr Leto said.
“If the region is going to house these centres, it’s important to understand what the benefits, opportunities and risks look like.
“We’d like to see Western Sydney more than just a home for big digital boxes, but as a digital sandpit, where major tech companies are on the ground and working with our universities, TAFE and our local start-up communities to grow capability and test ideas.”
Mr Leto said that while the strategic economic and industry opportunities linked to data centre development needed to be weighed against energy, water and environmental impacts, there were many international examples where it has worked.
“It’s well-known that these developments will require a lot of power and water, which is why a State Digital Infrastructure Strategy can help drive a more coordinated approach across government, while also providing more certainty,” he said.
“We’d also like to see incentives and fast-tracked approvals for data centre proposals that provide their own renewable or battery power supply.”
Speaking at the event, Treasurer Daniel Mookhey said Western Sydney represented the future for data centre investment.
“If you want to see what the future of this state in the country looks like in 10 years, you come to Western Sydney today. Because it’s always been built, and it’s always been reinvented in this region,” Mr Mookhey said.
“That’s the reason why we’re so pleased to be here to talk about the challenges and the opportunities associated with this move.”
The Dialogue has put forward a number of recommendations to both the NSW and Federal Government aimed at strengthening planning, coordination and community outcomes, including:
- Improving whole‑of‑government coordination and planning by delivering a statewide Digital Infrastructure Plan that recognises data centres as critical infrastructure.
- Accelerate data‑centre planning approvals for projects that demonstrate benefits to the community and meet the federal government’s Data Centre Expectations.
- Plan support ahead of demand, including data centre precincts with integrated power, water and enabling infrastructure.
- Establish community funds supporting STEM education, digital inclusion, scholarships and conservation initiatives.
- Build local skills pipelines, including supporting the NSW TAFE–Microsoft Data Centre Academy across GWS, and develop a dedicated GWS apprenticeship program in relevant trades.
- Apply ‘causer pays’ and cost‑reflective settings to ensure operators fund the infrastructure costs linked to power and water usage, except where upgrades benefit the community.
- Support lower‑impact water use by prioritising recycled water and investing in recycled and stormwater networks near major data centre precincts.
- Support hourly matched renewable energy agreements to cut emissions, improve reliability and stimulate investment in clean energy.
- Incentivise and fast-track proposals that include battery and renewable power supply.
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