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Data centres have high water demands. We are planning infrastructure, prioritising recycled water and implementing fair pricing principles so all customers receive an affordable, reliable water supply.
Supporting data centre growth
Data centres are now critical infrastructure. They store and process the digital information behind everyday services like online banking, health records, streaming and government systems.
At the same time, Greater Sydney is growing, and climate change impacts our water supply system. That's why we're planning ahead to support new housing and emerging industries like data centres while keeping water reliable, affordable and secure for everyone.
Managing data centre demand
Data centres have different water needs to homes and most businesses. They require large volumes of water concentrated in a small number of locations and need very high reliability.
We are well equipped to manage this. We're working with industry and government to understand demand, assess network capacity and plan infrastructure where it delivers the most value without putting pressure on residential customers.
Our principles
We've set clear principles to guide how we support data centre growth while serving the community:
- Residential customers and existing users will not face higher costs or added supply risk.
- Very large water users pay charges that reflect the true cost of supply.
- We prioritise the use of recycled water to support greater resilience.
- Risks are shared fairly and managed by those best placed to manage them.
- Pricing helps manage long‑term demand and cost uncertainty while protecting affordability.
Protecting customers and water security
We're committed to ensuring residential customers will be no worse off and continue to have a safe, reliable and affordable water supply.
The biggest challenge in planning for data centre growth is uncertainty about future demand. We're managing this through careful forecasting, flexible planning and infrastructure that can adapt over time.
Building a sustainable city
The infrastructure that supports data centres today also strengthens water security for all customers tomorrow. Using more recycled water makes better use of our natural resources, reduces reliance on rainfall and helps keep water flowing during drought.
We're committed to being an active partner in enabling investment, jobs and economic growth while maintaining a reliable water supply and keeping our customers at the heart of everything we do.