- Posted on 11 Mar 2026
- 3-minutes read
As $100bn in hyperscale data centres expand, the real-world impact of ‘the cloud’ 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 environmental impacts with little say in how development unfolds. When benefits leave and burdens stay, trust erodes 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 brings together a transdisciplinary team to investigate two key questions:
- How are local communities experiencing and responding to data centre developments in their locality?
- 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".
Our impact
A core output of this project is a strategic roadmap guiding decision‑makers toward a sustainable and equitable data centre industry. It highlights four levels of transformative action:
- Strategic – Aligning growth with Net Zero and energy transition goals.
- Collaborative – Partnering across government, industry and community.
- Innovative – Delivering forward‑looking, actionable recommendations.
- Cultural – Strengthening social licence and long‑term trust.
This project will shine a light on how local communities across Sydney are experiencing, making sense of, and responding to data centre expansion in their locality.
Through systems thinking, collaboration and transformative approaches, the final roadmap will detail a breadth of policy pathways and actions that government, industry, and local communities can take to collectively create a more community-inclusive data centre industry in NSW, Australia and beyond.
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.