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ARTICLE · 25 AUGUST 2026

NSW Data Centre Guidelines And Network Connection Consultation Paper

Corrs Chambers Westgarth
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Corrs Chambers Westgarth

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The New South Wales Government has released a comprehensive policy framework for data centre investment, establishing six core principles that developments must address while promising streamlined planning approvals. The framework introduces significant new compliance obligations around energy procurement, cost recovery contributions, and demand flexibility, including a $200,000/MW Major Network Upgrade Fee and requirements for renewable energy agreements with minimum 40% wind component.

AustraliaGovernment, Public Sector

The New South Wales Government has released a significant new policy framework for data centre investment in the state. The framework sits within a rapidly evolving national artificial intelligence (AI) governance landscape. It follows the federal government’s recent announcement discussing a national planning and approvals framework for data centres and requiring large-scale data centres to underwrite new power supply. 

NSW’s data centre proposal

Below is summary of the NSW government’s key announcements.

NSW Data Centre Guidelines

The government has published formal Guidelines setting six principles that data centre developments must address. They covering environmental and efficiency standards, no net cost to consumers and communities, funding additional energy and water supply, enhancing local infrastructure and amenity, investing in future industries, and workforce training commitments. Projects that address the Guidelines will benefit from streamlined planning processes

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