17 Aug 2026
The Green Building Council of Australia (GBCA) has welcomed the NSW Government's release of its Data Centre Guidelines and Policy Framework, describing it as an important step towards supporting sustainable investment in one of the state's fastest-growing industries.
The framework's three pillars, focused on planning, energy and water, recognise the critical role data centres play in supporting Australia's digital economy while ensuring growth delivers positive outcomes for communities, infrastructure and the environment.
GBCA particularly welcomes the Guidelines' six principles and associated performance measures, which seek to apply world-class environmental and efficiency standards while delivering broader community and economic benefits.
GBCA Chief Executive Officer Davina Rooney said the framework provides a strong foundation for responsible growth in a sector that is evolving rapidly as demand for digital services and artificial intelligence continues to grow.
"The NSW Government's framework sets an important ambition for what world-class data centre investment should look like in Australia," Ms Rooney said.
"As demand for digital infrastructure continues to grow, it is essential that new investment strengthens our economy while leaving communities better off. We welcome the framework's focus on environmental performance, resource efficiency and ensuring growth delivers no net cost to consumers and communities."
GBCA welcomed the inclusion of performance measures covering issues such as energy use, water use, air quality and noise impacts, drawing on international best-practice benchmarks. The organisation said clear expectations and greater certainty would provide benefits for investors, industry and local communities alike.
GBCA also supported the NSW Government's decision to establish an Industry Advisory Forum, describing ongoing engagement as essential to ensuring policy settings remain effective as technologies, markets and community expectations continue to evolve.
"Data centres are a rapidly changing industry. The establishment of an Industry Advisory Forum will create an important mechanism for government and industry to work together to respond to emerging opportunities, new technologies and evolving market conditions," Ms Rooney said.
"We look forward to working closely with the NSW Government, industry and other jurisdictions to continue refining environmental performance standards and supporting policy settings that encourage investment while delivering strong environmental, social and economic outcomes."
GBCA noted the NSW Government's commitment to periodically review the guidelines and update them in response to material changes in the operating environment. This commitment will help ensure the framework remains fit for purpose as the sector continues to develop.
The organisation also said transparency around how proposals are assessed against the framework's principles and performance measures will be important in building confidence and supporting continuous improvement across the sector.
"Rapid investment in data centres should leave communities better off. When done well, data centres can support renewable energy investment, strengthen digital industries, create jobs and grow skills, while contributing to the infrastructure needed for Australia's future economy," Ms Rooney said.
"This framework is a positive step forward and we look forward to continuing our partnership with the NSW Government as these guidelines are implemented and refined over time."
GBCA is currently working with a number of data centre operators and developers through its Sustainable Data Centres Program and is part of an international coalition of leading built environment and sustainable finance organisations, which seek to support industry leadership in delivering a range of positive outcomes for data centres, the environment and the community including energy efficiency, water stewardship and reductions in upfront carbon.