Marsden Park’s New AI Data Centre: What does it mean for Western Sydney?
By BIANCA STANTON | IN late 2024, NSW planning minister Paul Scully announced the approval of a data campus at Marsden Park in Western Sydney.
The facility is set to become the largest of its kind in the southern hemisphere, marking a developmental milestone for Australia’s artificial intelligence (AI) industry.
The $3.1B project includes six four-storey buildings, with each building capable of housing 24 data halls.
According to the project developer, CDC Data Centres (CDC), the facility consists of technological infrastructure necessary to store, process and distribute digital information.
In powering next-generation AI and cloud-computing workloads, the facility is expected to foster significant growth in Western Sydney’s digital economy.
“CDC Data Centres is proud to play a key role in ensuring Australia’s access to secure and reliable systems that underpin the progress of our economy and society.
“The Marsden Park campus is purpose-built to support next-generation cloud, high-performance computing and AI workloads, positioning Australia as one of the regional leaders in advanced data capability,” said CDC CEO and founder, Greg Boorer.
Along with its expansion of Australia’s digital economy, the facility is expected to offer significant financial benefits for Western Sydney.
The NSW government projects that the development will generate about 220 construction jobs and 265 operational jobs.
“From skilled trades to project management, this development will offer a wide range of employment opportunities, supporting local families and contributing to the economic vitality of our region.
The size and scope of this project once again demonstrates that Blacktown City is the destination of choice for world-class, sustainable developments such as the CDC data centre campus,” said Blacktown City Council Mayor, Brad Bunting.
However, there are concerns about the significant energy demands of the facility as its 504-megawatt capacity is equivalent to the energy usage of 140,000 homes.
According to a greenhouse gas emissions report by environmental consultant Stantec Australia, the data centre’s buildings would be “high energy consumers, primarily sourcing power from the NSW electricity grid”.
The same report said the project’s emissions would exceed 25,000 tonnes of carbon dioxide in its initial years of operation, reducing as the NSW grid decarbonises.
CDC has implemented sustainability measures in their project development regarding their energy usage. The developer has plans to source up to 99 per cent of the energy required for the facility from renewable sources by 2030.
The facility’s air-based cooling and use of chilled and reused water will consume just 0.01 litres of water for every 1 kilowatt-hour of energy consumed.
In response to Australia’s rapidly expanding AI industry, the federal government recently announced plans for a national framework to regulate large-scale data centres, including CDC’s Marsden Park facility.
On July 15, Prime Minister Anthony Albanese delivered a speech titled ‘AI in Australia’s interests’ at the University of Sydney. In his speech, Mr Albanese said to expect mandatory requirements to cover power, grid connection, energy efficiency and water use.
Mr Albanese said the data centre companies would have to minimise their water usage and contribute at least as much energy to the grid as they consumed, including both renewables and firming power.
The government would also require new facilities to underwrite new electricity generation as well as pay the full cost for connecting to the grid.
“This world leading framework is about Australia choosing to shape the future rather than letting the future of AI shape us,” said Mr Albanese.
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