Headline Points

  • The NSW Investment Delivery Authority (IDA), which reports jointly to Mookhey, the Minister for Planning, and the Minister for Industry and Trade, attracted 48 proposals worth $136 billion in its first expression of interest round, including 23 data centre and technology projects.

  • The IDA approved CDC Data Centres' $3.1 billion, 504MW hyperscale facility at Marsden Park in 12 months, the largest data centre in the Southern Hemisphere.

  • Mookhey attended the topping-out ceremony for Macquarie Data Centres' $350 million, 47MW IC3 Super West facility, scheduled to open September 2026.

  • Victoria's Premier Jacinta Allan has declared the state will be "ruthless" about attracting data centres, committing $5.5 million to a Sustainable Data Centre Action Plan targeting $25 billion in potential investment.

  • The Federal Government released national expectations for data centres on 23 March 2026, setting the baseline against which all state-level initiatives will be measured.

NSW Treasurer Daniel Mookhey has taken a visible role in the state's effort to attract and accelerate data centre investment. While data centre policy in NSW spans multiple departments, Mookhey has made several public appearances related to data centre investment, including announcing the IDA's first expression of interest round, attending the IC3 Super West topping-out ceremony, and commenting on major approvals.

The Investment Delivery Authority

The IDA was announced in the 2025-26 NSW Budget with $17.7 million in funding. It is a cross-government authority comprising the Secretaries of the Premier's Department, NSW Treasury, the Department of Planning, and Infrastructure NSW. It reports to three ministers: the Treasurer, the Minister for Planning, and the Minister for Industry and Trade.

The IDA was created after a productivity screening of the top 25 private sector investments in the NSW planning system found that energy and data centre projects were being held up more than a year longer than equivalent projects in other states.

The authority targets private sector projects valued at $1 billion or more across data centres, technology, renewable energy, and energy security. Its first expression of interest round in October 2025 attracted 48 proposals, 23 of which were data centre and technology projects. NEXTDC flagged over $15 billion in AI infrastructure projects across NSW. AirTrunk described the reform as recognition that "the race to build AI infrastructure is a global one and speed to build is the critical factor."

The IDA's most significant result to date is the approval of CDC Data Centres' $3.1 billion hyperscale facility at Marsden Park in 12 months. At 504MW, the facility will be the largest data centre in the Southern Hemisphere. In March 2026, the NSW Government endorsed 16 projects through the IDA process.

IC3 Super West

In December 2025, Mookhey attended the topping-out ceremony at Macquarie Data Centres' IC3 Super West facility in Macquarie Park, helping pour the final concrete on the 47MW building. The $350 million facility is on track to open in September 2026 and will be the only data centre adding new AI capacity to Sydney's north zone that year.

"AI capability will expand because this building exists. And NSW will be more competitive, globally competitive, because this building exists," Mookhey said.

IC3 Super West supports both air and liquid cooling, including direct-to-chip systems for high-density AI deployments. Macquarie has since secured an additional $50 million debt facility to bring forward 19MW of the total 47MW capacity. Browse current data centre and AI jobs

The NSW and Victoria Contest

Victoria's Premier Jacinta Allan declared in November 2025 that the state would be "ruthless" about attracting data centres, committing $5.5 million to a Sustainable Data Centre Action Plan designed to activate up to $25 billion in potential investment. Victoria hosts more than 58 operational data centres, has approved NEXTDC's $2 billion Fishermans Bend digital campus, and released an AI Mission Statement in January 2026.

At a NSW Estimates hearing in March 2026, Mookhey responded to questions about Victoria's competing push with a pointed "best of luck." NSW points to advantages in total deployable capacity, proximity to the majority of Australia's submarine cable landing stations, and the IDA's demonstrated approval speed.

Both states are competing for the same pool of global hyperscale capital. The result so far has been faster approvals and clearer policy signals on both sides, which is a net positive for Australia's total deployable capacity.

Federal Expectations Set the Baseline

On 23 March 2026, the Federal Government released national expectations for data centres and AI infrastructure developers. The framework, announced by Ministers Chris Bowen, Tim Ayres, and Dr Andrew Charlton, requires projects to underwrite new renewable power supply, pay full grid connection costs, use water responsibly, and create local training opportunities. Projects meeting these expectations receive expedited regulatory assessments.

Data Centres Australia CEO Belinda Dennett broadly welcomed the framework but identified a "significant omission" in its exclusion of on-premises data centres. Dennett also noted that operators have contributed $3.1 billion to energy infrastructure since 2020, with $7.2 billion committed through 2030, and that operators pay 100% of their own grid connection and network augmentation costs under Australia's existing regulatory framework.

What Comes Next

The NSW Legislative Council commenced an inquiry into data centres on 29 January 2026, examining planning, energy, and community impact. The inquiry was self-referred by the Public Accountability and Works Committee, with submissions closing 27 March 2026. Its findings may shape the next phase of NSW policy.

Both NSW and Victoria are now operating under a shared federal framework, and the question is whether state-level competition continues to accelerate investment or begins to fragment the national approach. Australia's standing as a leading APAC data centre market depends in part on the answer.

Why This Is Significant

The IDA model is being closely watched. A $3.1 billion facility approved in 12 months is a measurable result. Whether this pace can be sustained without compromising planning rigour will determine its credibility as a model for other jurisdictions.

State competition is accelerating national capacity. NSW and Victoria are both making concessions on speed and regulatory clarity to attract hyperscale operators. The net effect has been positive for total Australian capacity to date.

The energy narrative is shifting. The $3.1 billion already contributed and $7.2 billion committed to energy infrastructure by data centre operators provides a factual basis for the argument that the sector invests in, rather than simply draws from, the energy grid.

Federal expectations now set the floor. State-level initiatives from both NSW and Victoria will be assessed against the national framework released on 23 March 2026. Alignment between state and federal approaches is not yet guaranteed.

Workforce remains a constraint. The sector needs to grow from approximately 9,600 to 17,900 workers by 2030. Planning reform alone will not deliver the pipeline without a parallel investment in skills and training. Browse current data centre and AI jobs