The Hunter could be in line for more data centre investment as the NSW Government moves to support growth in the “emerging industry.”
Business Hunter has backed new planning guidelines for the sector, which it sees as an “important emerging industry,” but says development must also be sustainable.
The Hunter is already seeing early interest in the sector, with a proposed 540-megawatt artificial intelligence data centre planned for the former Hydro Aluminium site at Kurri Kurri.
The upcoming project could create about 500 construction jobs and 250 ongoing jobs, if approved.
Business Hunter CEO Bob Hawes said the Hunter had the land, workforce, and energy expertise to attract new projects.
“The Hunter has a unique opportunity to leverage its existing industrial land, skilled workforce, energy expertise and emerging renewable energy assets to attract suitable digital infrastructure investment,” Mr Hawes said.
Data centres could create new jobs and investment across the region, including on former mining and industrial sites.
But Mr Hawes said the industry needed to be considered alongside other sectors competing for land, water, energy, and infrastructure.
“Data centres are an increasingly important piece of Australia’s digital infrastructure and have the potential to generate investment and employment opportunities in regional areas,” he said.
“For the Hunter, data centres are one part of a diverse and evolving economy.”
The facilities can require significant amounts of electricity and water.
Business Hunter has welcomed requirements for operators to secure renewable energy through power purchase agreements.
Mr Hawes said the measure would help support the state’s energy transition and limit pressure on the electricity system.
The organisation has also backed a planned IPART review of water pricing and use. It said the review would help ensure water resources were managed responsibly.
Mr Hawes said local communities and existing industries should not be disadvantaged by the growth of the sector.
The new guidelines also encourage data centres to be located in areas with suitable infrastructure.
“What’s important is that development is guided by long-term planning that supports local jobs, protects existing industries, manages resource impacts and delivers tangible benefits for regional communities,” Mr Hawes said.
He said data centres could become part of the Hunter’s broader economic diversification. “Done right, data centres can form part of the Hunter’s next chapter of economic growth.”
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