Data centres crunch the numbers for new flats

NSW has announced a new body to speed up approvals for major developments worth over $1 billion – but don’t assume that’s going to mean a boost in housing construction.

Okay, there may be high-rise residential or mixed-use developments, but the Investment Delivery Authorit (IDA) is mostly about data centres, energy projects and hotels.

The Australian is reporting that NSW Premier Chris Minns and NSW Treasurer Daniel Mookhey calls the new IDA a “turbocharger” that will build on successes like the Housing Delivery Authority and includes nearly $80 million in funding to support innovation and tech startups.

Tech Central, Sydney’s growing tech hub being revamped near Central Station, will get $38.5 million, plus funding for emerging tech, female founders, and even the space industry. 

With NSW still struggling to meet housing and infrastructure needs, the message seems clear: NSW wants to be open for business, especially if it relates to data centres and what’s rapidly being called ‘data sovereignty’ to make sure we aren’t reliant on US technology services like Amazon AWS and Google.

The other major states are taking different tacks on tax breaks for developers. In Victoria, their state budget is also prioritising housing (though nothing about data centres or AI infrastructure). Queensland’s state budget is headlining investments in health rather than housing or infrastructure. 

NEXTDC CEO Craig Scroggie – who is charged with building $15 billion of infrastructure projects like AI factories, data centres and ‘mission-critical’ operations centres – says the geopolitical environment means “trust and sovereignty are economic assets”.

You can find NEXTDC’s NSW and other planned data centre development  locations at this link.

“AI infrastructure has outgrown traditional planning systems. These aren’t just data centres – they’re sovereign-scale assets designed to power the AI era,” he says.

“Conventional frameworks are now facing first-of-a-kind scale challenges. This reform clears the path for accelerated approvals and long-term certainty, unlocking the investment required to deliver national capability and positioning NSW as a global destination for next-generation digital infrastructure.”

The Building Commission NSW will also receive a $145.1 million cash boost so the dedicated building regulator can continue to police the sector, allowing it to digitise penalty infringement notices, and support joint taskforces with other regulators like Fair Trading and ASIC.