The WSROC Board has endorsed a formal policy position to guide the organisation’s engagement on the rapidly growing issues of data centres, artificial intelligence (AI) infrastructure and cyber security.

The position recognises the significant economic and service-delivery opportunities associated with AI and the digital economy, while emphasising the need for strategic planning, appropriate safeguards and positive outcomes for the communities hosting this infrastructure.

“WSROC supports the responsible development of data centres and AI-enabling infrastructure in Western Sydney, provided that development is guided by coordinated regional planning, robust environmental and infrastructure safeguards, transparent governance arrangements, meaningful community engagement, and mechanisms that ensure host communities share fairly in the benefits as well as the impacts of growth.”

Planning for growth
Western Sydney is already a significant location for data centre development, supported by access to electricity, digital connectivity, industrial land and existing infrastructure. Data centres are critical infrastructure for cloud services, AI and the wider digital economy, and investment in the sector has the potential to support productivity, innovation, new industries and skills.

At the same time, the scale and concentration of development means that its impacts cannot be considered one project at a time. WSROC is advocating for a more coordinated, regional approach that considers energy, water, transport, digital connectivity and land use together, including the cumulative impacts of multiple facilities.

Managing resources and local impacts
AI-enabled computing is increasing demand for the physical infrastructure that supports it. For Western Sydney, this includes pressures on electricity networks, water supplies, industrial land and local infrastructure, as well as issues such as heat, noise and amenity.

WSROC supports clear and transparent performance expectations for energy and water efficiency, renewable energy, recycled water, heat management and other environmental impacts. Better public reporting and consistent data are also important to support effective infrastructure planning and community confidence.

Ensuring local communities benefit
While the benefits of digital infrastructure extend well beyond the communities where it is located, many of the infrastructure and land-use impacts are experienced locally.

WSROC is advocating for a fairer alignment between these benefits and impacts, including appropriate infrastructure contributions, local procurement, workforce development and skills opportunities. Developers should also meet the infrastructure costs attributable to their developments, rather than shifting these costs to councils, households and existing businesses.

Supporting responsible AI adoption
The policy position also recognises that AI itself presents significant opportunities for local government. Councils are already exploring applications across planning, customer service, asset management, environmental monitoring and administrative processes, with potential to improve productivity and service delivery.

However, responsible adoption requires appropriate governance, capability and safeguards. WSROC supports practical, proportionate approaches to privacy, cyber security, data governance, procurement, transparency and accountability. AI should support professional judgement and public services while retaining appropriate human oversight where decisions affect individuals and communities.

A constructive approach
WSROC will continue to work with councils, government, industry, utilities and other stakeholders to support a coordinated approach to AI and data centre development.

The aim is not to stand in the way of technological investment, but to help ensure that growth is well planned and that the infrastructure, governance and community outcomes needed to support it are considered alongside the opportunities.

Our focus is on supporting innovation and investment while strengthening infrastructure resilience, environmental sustainability, public accountability and community trust.

Further information
Read WSROC’s recent submissions and advocacy on:

• Artificial Intelligence – WSROC submission to the Joint Select Committee on Artificial Intelligence, September 2026
• Data centres – WSROC submission to the NSW Data Centre Consultation Paper, May 2026
• Data centre planning – WSROC response to the NSW Parliamentary Inquiry into Data Centres, March 2026
• Data Centre Policy Framework – WSROC media release, August 2026