Ten Australian local councils are advancing mega data center developments across their jurisdictions.
Blacktown City Council—a densely populated western Sydney belt comprising 54 suburbs and an estimated 460,000 people—has emerged as Australia's data centre epicentre. According to figures from RenewMap, which tracks current and future data centre projects using publicly available data sources, the Blacktown local government area has 16 data centres either open or under construction. Among them is the soon-to-be largest data centre in the Southern Hemisphere: a $3.1 billion facility under construction in Marsden Park.
The project has sparked community concern, with residents questioning the power consumption of an electricity-intensive data campus near homes, schools, and local amenities. More than 3,500 people have signed a petition asking NSW Premier Chris Minns to halt the expansion, citing the Marsden Park project as "rushed" with limited community consultation.
According to AMP economist My Bui, electricity consumption by data centres has doubled since 2020 and now accounts for close to 2 per cent of global electricity demand. "If new data centres rely mainly on existing supply, they could compete with households and energy-intensive industries such as mining and manufacturing, pushing up electricity prices and effectively limiting how quickly the sector can grow without weighing on the broader economy," Bui said. "Their round-the-clock demand (even when wind and solar output is low) could also keep coal- and gas-fired generation running for longer, delaying the shift to renewables."
Queensland is experiencing a parallel surge. The City of Brisbane council area ranks second nationally with 15 current and future data centre projects. The NEXTDC B2 Data Centre in Fortitude Valley is the largest operational facility in the Queensland capital. Developers are drawn to Brisbane for its lower land and power costs relative to Sydney.
Victoria's City of Wyndham ranks third, with its flagship project being the 14-acre Stack MEL02 data facility in Truganina. The local council has moved cautiously on rapid expansion, with councillors unanimously backing a proposal to provide a clearer roadmap for future projects. Mayor Mia Shaw said in July that residents deserved "greater transparency from the Victorian government about the planning and placement of data centres, along with stronger community consultation processes that properly assess impacts on local communities." A council spokesperson indicated it would consider a report examining data centre growth, community impacts, and formal policy options in October.
Victorian Premier Ben Carroll has also moved to manage expansion. In September, he proposed a new data centre policy requiring facilities to power their own renewable energy supply and storage, prohibiting them from residential areas, and mandating a minimum 150-metre setback from homes.
Beyond the top three councils, the ACT and Brimbank in Victoria each have nine operational or incoming data centres. The City of Melbourne ranked sixth with eight, followed by Adelaide with six. Willoughby, Parramatta, and Ryde councils in Sydney tied at the bottom of the top 10 with five data centres apiece. Ryde notably has more facilities under development than currently operational.
Australia's data centre capacity is projected to expand dramatically. The Clean Energy Finance Corporation forecasts national capacity will rise from 1.35 GW to between 4.7 GW and 7.4 GW by 2035. CEFC head of infrastructure Julia Hinwood said: "Data centres are critical infrastructure powering the modern digital economy. With the right policy settings and renewable generation, Australia can position itself as a leader in clean digital infrastructure – creating jobs, improving grid resilience, and driving innovation across the energy system."