Infrastructure Sustainability Council welcomes NSW Government Data Centre Policy Framework and Guidelines
The Infrastructure Sustainability Council (ISC) has welcomed the NSW Government’s release of the NSW Data Centre Policy Framework and NSW Data Centre Guidelines, describing them as an important step towards supporting the sustainable growth of Australia’s rapidly expanding digital infrastructure sector. The new framework seeks to balance investment attraction with responsible management of energy, water, environmental and community impacts, underpinned by six core principles and a new policy approach designed to support long-term industry growth.
ISC support’s the NSW Government’s recognition that data centres are critical infrastructure and that future growth must be accompanied by strong sustainability, resource efficiency and community outcomes. The Guidelines establish performance measures focused on environmental standards, consumer protections, additional water and energy supply, local community benefits, supply chain development and workforce skills.
The announcement aligns with findings from the ISC’s recently released Digital Infrastructure Futures: Phase 1 Emerging Insights Report, which highlights both the opportunities and the sustainability challenges associated with growing demand for digital infrastructure, including data centres, cloud services, AI and computing infrastructure. The report notes that data centre energy consumption is projected to double globally by 2030 and that governments increasingly need integrated approaches that balance digital growth with environmental and social outcomes.
ISC Chief Executive Officer Toby Kent said the framework demonstrates the importance of treating digital infrastructure as both an economic enabler and a sustainability challenge.
‘Digital infrastructure is now fundamental to the way modern economies and communities’ function. Data centres underpin everything from communications and commerce to critical services and artificial intelligence.
‘The NSW Government’s Framework acknowledges that future investment must be matched by responsible planning, efficient resource use and tangible community benefits. We welcome the emphasis on environmental performance, energy and water efficiency, industry capability and long-term resilience.
‘ISC’s Digital Infrastructure Futures work has highlighted the growing need for a more holistic approach to digital infrastructure sustainability. As demand for data processing, storage and AI capability accelerates, frameworks such as this help create greater certainty for industry while supporting positive outcomes for communities and the environment.
‘We look forward to working with government, industry and infrastructure owners to continue advancing best practice sustainability outcomes across Australia’s digital infrastructure sector.’
ISC’s Digital Infrastructure Futures report identifies digital infrastructure as a critical enabler of more connected, intelligent and sustainable infrastructure systems. The report calls for greater consideration of digital infrastructure across the full asset lifecycle and highlights the need for adaptive, resilient and sustainable approaches to future investment.
ISC also welcomes the NSW Government’s commitment to ongoing industry collaboration through the proposed Industry Advisory Forum and the annual review of the Guidelines, recognising the pace of technological change and the importance of continuous improvement.
Digital Infrastructure Futures: Phase 1 Emerging Insights Report is available to download here.
Media enquiries
Annie Manson
Head of Policy, Advocacy & Media Relations
Infrastructure Sustainability Council
+61 422 131 741