Senate AI inquiry opens with dispute over Sydney data-centre projects
Published · Updated
What happened
The Senate inquiry's first public hearing heard local opposition to Sydney-area data-centre developments, including concerns about disclosure, energy and water use, and proximity to housing. AirTrunk and Goodman gave evidence in support of their projects and argued data-centre capacity is needed for AI and cloud demand.
Why it matters
The hearing puts data-centre permitting constraints into a live national policy process. If the inquiry leads to tighter expectations on siting, grid connection, water use or disclosure, project timelines and costs for AI-related infrastructure in Australia could change in the near term.
A Senate inquiry into artificial intelligence and data centres held its first hearing on 2026-09-22, taking evidence from Sydney residents who objected to nearby data-centre developments on transparency, environmental and siting grounds. Developers including AirTrunk and Goodman defended the projects and the role of data centres in digital infrastructure. The hearing turns a permitting and community-consent issue into an active federal policy question, with implications for power, water and land-use settings tied to Australia's AI build-out.
Watch for
Senate Standing Committees publication of the 2026-09-22 hearing transcript and any supplementary questions on data-centre water and power use by 2026-09-23 The inquiry secretariat posting additional submission deadlines, witness lists or a hearing schedule for further AI and data-centre sessions by 2026-09-25 NSW Department of Planning, Housing and Infrastructure filing updates or determinations for named Sydney data-centre projects linked to AirTrunk or Goodman by 2026-09-25 AirTrunk or Goodman publishing post-hearing statements with quantified commitments on water, noise, buffer zones or electricity sourcing by 2026-09-25
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