• Posted on 11 Mar 2026
  • 3-minutes read

Data centres, often described as ‘the cloud’, now sit at the core of Australia’s digital and AI ambitions. As more than a $100 billion in hyperscale data centres expand, the real-world impact of these vital facilities is becoming unmistakable across Sydney’s north and west.

Critical but resource‑hungry, these facilities strain local infrastructure and neighbourhood amenity. Nearby residents face noise, heat, traffic and other environmental impacts with often little say in how development unfolds. When benefits leave and burdens stay, trust is undermined and social licence weakens.

So how might NSW reimagine the future of data centres in ways that align with local values, priorities and aspirations—ensuring these essential facilities can become genuinely better neighbours?

Project overview

This project is looking to ensure all stakeholders are included and consulted to co-create a sustainable, community-inclusive data centre industry.

A transdisciplinary team is collaborating to investigate two key questions:  

  1. How are local communities experiencing and responding to data centre developments in their locality?  
  2. How can the dominant policies and priorities shaping the NSW data centre transition be broadened to incorporate community values and priorities, and in doing so enable the State to become a more equitable and sustainable place for data centres?

Working with industry, government and community partners, this research will deliver a holistic roadmap that integrates social, economic, environmental, technological and policy considerations. Fieldwork will focus on key development hotspots in Sydney where data‑centre growth intersects with local communities.

By examining how current plans shape local impacts—and identifying practical opportunities to reduce pressures and deliver long‑term benefits—the project aims to turn a complex challenge into a positive pathway for NSW’s future.

Our work is shaping a data centre industry that puts people first—ensuring this vital digital infrastructure grows in ways that reflect the values of communities, industry and government alike".

Dr Bronwyn Cumbo, project research lead, Transdisciplinary School, UTS

Work with us

We deliver a wide range of research projects for public and private sector partners seeking research expertise and support in overcoming their complex challenges using our unique transdisciplinary (TD) methodology.

To get involved in this research project or to find out how TD Research can help you and your organisation, please email TDResearch@uts.edu.au.

Related reading

If you’re interested in reading more in this research area, here are some additional related resources:

Communities need to be more involved with data centre planning and evolution.

Can Australia build one of the world's largest data centers

Opportunities for Participatory Design in Shaping Australia’s Data Centre Futures 

Download project flyer  (PDF)

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