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Friday, 13 November 2026

Data Centre Plans Face Community and Policy Pressure

Data Centre Plans Face Community and Policy Pressure
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Arabic version: خطط مراكز البيانات تواجه ضغوطاً مجتمعية وسياساتية

According to ABC News, Australia’s data centre industry is confronting community hesitancy and uncertainty over regulation as several proposed projects are paused or cancelled. Data Centres Australia chief executive Belinda Dennett said proponents were still working out how to consult communities effectively, while operators and investors sought clearer policy settings.

Quantum DC has paused plans for a 1,200-megawatt AI data centre at Tungkillo in the Adelaide Hills after frustration, anger and protests from the surrounding community. The industry body does not represent Quantum DC. In New South Wales, a proposed AI data centre on Sydney’s Cooks River was scrapped over the weekend, following other NSW proposals that were dropped after community opposition.

Dennett said consultation involved a trade-off between engaging early and providing detailed information. Communities wanted early engagement but also answers on design plans, energy sources and potential water use, she said. She added that South Australia had strong potential and interest for data centre construction, but that a lack of federal rules was contributing to uncertainty across states.

South Australian political parties including the Liberals, One Nation and the Greens welcomed the Tungkillo pause, while the state government criticised the developer’s consultation process. AI Minister Chris Picton said planned legislation would allow proper regulatory control over issues including energy, water and land use. The Greens called for a moratorium, while One Nation said it wanted a pause until a parliamentary inquiry is completed. The Greens, One Nation and the Liberal Party backed the inquiry in the upper house; Labor did not support it.

Opposition leader Ashton Hurn said a data centre on prime agricultural land at Tungkillo did not make sense, while also arguing communities needed to understand why the facilities were needed. One Nation SA leader Cory Bernardi said data centres were not inherently bad, but projects needed a community licence.

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