ResearchNSW data centre mandate
NSW Government backed a renewables mandate for data centre operators that only 30% of residents wanted, while 44% preferred a levy the government rejected
Residents overwhelmingly want government action on the electricity costs of data centres, but the government chose the delivery method fewest people backed, and trust in operators is at rock bottom.
Key findings
- 86% of NSW residents want government action on electricity costs from data centres, but support splits sharply on delivery method
- 44% backed a levy on operators to offset costs to households; 30% supported the government’s chosen mandate approach
- In Greater Sydney where data centres concentrate, 51% preferred a levy versus 26% for a mandate
- In regional NSW, the government’s mandate narrowly led: 37% backed it against 31% for a levy
- Only 19% of Australians trust data centre operators to be upfront about water and energy use
- 69% say government is not doing enough to secure a fair return from data centre expansion
- 33% cite water scarcity as a concern; 34% point to noise and air pollution from facilities
- 81% of Australians would not buy a home near a data centre
What it means
The NSW Government has chosen a policy architecture that depends entirely on operator compliance at precisely the moment public trust in those operators is lowest. A mandate transfers risk from government to households: if operators fail to deliver renewables as promised, there is no backup mechanism.
The geographic split reveals a core tension: communities bearing the direct burden of data centres want government-backed guarantees, not promises. The 69% who doubt government is extracting fair value signals that acceptance of further expansion hinges on rebuilding credibility around the deal itself, not just the mechanism.