New South Wales has attracted $73 billion in proposed data centre and digital infrastructure investments through the Investment Delivery Authority’s first call for proposals.
The sector topped the list of proposals revealed by the state government on Thursday as business leaders and politicians met in Sydney for a global investment conference modelled on the super summit held in New York earlier this year.
Treasurer Daniel Mookhey said the robust interest signals strong private sector confidence in the state, which also received almost $64 billion in proposals for renewable energy and energy security projects ($63 billion) and hotels ($860 million).
“This strong response from the private sector shows confidence in NSW as a place to invest and grow. Every proposal submitted meets the IDA’s eligibility threshold, which speaks to the scale and ambition of these investments,” he said.
The Investment Delivery Authority was set up with $17.7 million in the June state Budget to act as a front door for private investment and to speed up planning approval times for major projects.
It followed analysis earlier this year that showed energy and data centre projects were being held up in the planning system, in some cases more than a year longer than NSW’s southern neighbour, Victoria.
The first round of expressions of interest opened last month for projects valued at more than $1 billion ($200 million for hotels), bringing forward up to $50 billion in investment.
NSW Premier Chris Minns said data centres were a key driver behind the government’s push to fast-track large-scale commercial projects and give investors greater certainty, much like it has done with the Housing Delivery Authority.
“Global investment in these centres will exceed $6 trillion, by the end of the decade,” he told the CITI A50 Sydney Investment Summit at the Sydney Opera House on Thursday.
“It’s one of the reasons why we’ve introduced the idea to sweep through the planning system, and to take those billion-dollar projects on, head on, and guide them through the planning system in our state.”
All 48 proposals will now be evaluated before being considered by the Investment Delivery Authority, which is made up of secretaries from several central agencies and Infrastructure NSW.
Shovel-ready projects that align with NSW investment interests will be prioritised, with recommendations then made to Treasurer Daniel Mookhey, Planning minister Paul Scully and Industry minister Anoulack Chanthivong.
Endorsed projects will receive “specialist government support”, including from dedicated teams within the Department of Planning, Housing and Infrastructure and the Premier’s Department.
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