Data centre inquiry must consider the AI opportunity for NSW
James Griffin
Shadow Minister for Energy and Climate Change
Shadow Minister for Artificial Intelligence, Digital and Investment
Jacqui Munro
Shadow Minister for the Environment
Shadow Minister for Science and Technology
The NSW Liberals and Nationals say the work of the nation-first parliamentary inquiry into data centres must be grounded in a clear understanding of the extraordinary economic and social opportunity presented by artificial intelligence, and the critical infrastructure required to power it.
Data centres underpin artificial intelligence, cloud computing, cybersecurity, health systems, financial services and government service delivery, all of which can directly improve outcomes for NSW citizens.
Concerns around water use, energy demand and environmental impacts are real, immediate and must be managed responsibly, but they should not be weaponised as a pretext to halt or discourage investment in the digital infrastructure that will power the next generation of jobs and productivity growth.
“Artificial intelligence will define economic growth, productivity and public service delivery for the next generation,” Mr Griffin said.
“Data centres are not optional, they are essential infrastructure if NSW wants to lead, not follow.”
“If NSW sends a signal that it is uncomfortable with building the infrastructure needed for AI, global capital will simply go elsewhere,” Mr Griffin said.
“That means fewer jobs, less innovation, and worse outcomes for citizens.”
Shadow Minister for the Environment, the Hon Jacqui Munro MLC said, “What we know is that the government is struggling to get the settings right on critical digital infrastructure. It is jeopardising our chance to have an honest and ambitious public conversation about how we lock in prosperity.”
"This inquiry is our chance to have a much-needed public conversation on AI, resources and the public good, where the government has failed to lead."
What is increasingly apparent is the lack of ambition from the NSW Labor Government when it comes to artificial intelligence and the digital infrastructure that underpins it.
“An ambitious government would be asking how AI can make our hospitals smarter, our energy system more efficient, and our public services more responsive,” Mr Griffin said.
“Instead, Labor appears far more comfortable talking about constraints than opportunity.”
The Coalition believes the work of this inquiry should be framed around a simple question: how do we maximise the benefits of AI for all of NSW, while managing impacts sensibly and transparently?
That requires:
recognising AI as a core economic and productivity driver;
supporting investment in energy and digital infrastructure with clear, stable policy settings; and
ensuring environmental safeguards are evidence-based and fit for purpose.
“This is not about slowing progress,” Mr Griffin said.
“It’s about getting the settings right so NSW can lead the nation in artificial intelligence, attract investment, and deliver better outcomes for people.”
NSW has the opportunity to be a national leader in artificial intelligence and digital infrastructure. That requires clear-headed policy, not ideological resistance to growth.
Related Articles: #DigitalGovernment
