The PSA has responded to the NSW Government’s consultation on electricity network connection and cost recovery for data centres.
The submission warns that rapid data centre growth could strain the state’s electricity network and water supplies. This growth could also raise household electricity costs and affect local communities. Proposed data centre connections in NSW have a combined capacity of 28 gigawatts. This demand far exceeds the state’s current average electricity use.
The PSA calls for urgent, enforceable rules requiring operators to meet all infrastructure and network costs. Operators should also fund renewable energy generation and storage in proportion to their demand. They should reduce energy use during grid stress and meet world-leading efficiency standards. These standards should cover both energy and water consumption.
The submission also calls for transparent public reporting and meaningful community consultation. In addition, it seeks safeguards for data sovereignty, privacy, local amenity and secure Australian jobs. The NSW Government must prevent data centres from shifting costs onto households. It must also protect the reliability of essential electricity and water supplies.