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Concerns over data centre use of recycled water at new Western Sydney facility

Professor warns demand from data centres not accounted for in water strategy

By LineZotpaper
Published
Read Time2 min
Sources2 outlets
Concerns have been raised that recycled water from a new $1.2 billion facility built to bolster Western Sydney's drought resilience will be used by data centres, a demand that water experts say was not accounted for in the region's water strategy.

The Badu Yarragul Water Resource Recovery Facility at Kemps Creek opened last month to treat 35 million litres of wastewater daily, with plans to double that capacity as the city grows. The facility has capacity to connect 140,000 new homes and businesses across Western Sydney, including the new airport.

Professor Stuart Khan, who has published more than 200 peer-reviewed articles on water quality and treatment, said demand from data centres was not accounted for in the Greater Sydney Water Strategy plan created in 2022.

"We have identified that we can get up to 140 gigalitres per year from recycled water schemes into the future over the next couple of decades," Professor Khan said. "If we take that away from customers, we give it to a new industry that wasn't accounted for in the strategy, then we need to think about where we are going to replace that future water supply from."

Neither the facility's environmental impact statement nor its environment protection licence explicitly mentioned data centres, though both reference "industrial and business use."

Sydney Water managing director Darren Cleary said the facility would produce high-quality treated water suitable for non-drinking purposes in homes, industrial and business use, agriculture, and for greening public spaces. "There's a real opportunity for this to be used for data centres," he said.

Mr Cleary said the water utility was investing $14 billion in capital over the next five years to ensure demand was met. "The infrastructure that will be delivered for them [data centres] will have to be done in a way that doesn't affect the services we provide to the broader customer base," he said. "So fundamentally they'll pay their way."

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Analysis

Why This Matters

  • Water supply for Sydney's growing population and climate resilience could be redirected to the rapidly expanding data centre industry, which was not a major factor when the current water strategy was drafted.
  • The facility represents a significant public investment in drought-proofing Western Sydney, and how recycled water is prioritised will set a precedent for future allocations.
  • Data centres are large water users for cooling, and unplanned demand could strain supplies intended for homes, agriculture, and public spaces.

Background

The Badu Yarragul Water Resource Recovery Facility at Kemps Creek opened last month, built at a cost of $1.2 billion. It treats 35 million litres of wastewater daily, roughly equivalent to 14 Olympic-sized swimming pools. Plans exist to double capacity to 70 million litres as the city grows. The facility is designed to serve 140,000 new homes and businesses in Western Sydney, including the area around the new airport. The Greater Sydney Water Strategy, published in 2022, was created to address pressure on water supplies from population growth and climate variability, but did not factor in demand from data centres.

Key Perspectives

Stuart Khan, water quality expert: He argues that diverting recycled water to data centres could undermine future water supply plans. The projected 140 gigalitres per year from recycled water schemes should be allocated with a "big picture perspective" and not given to an industry not accounted for in the strategy. Sydney Water and managing director Darren Cleary: The utility sees the facility as an opportunity for data centres, but says any infrastructure for them will be funded separately and will not affect services to other customers. "They'll pay their way." Critics/Skeptics: Critics point out that the facility's approvals do not mention data centres specifically, and that without explicit planning, water could be redirected from residential, agricultural, and public uses to commercial purposes without public debate.

What to Watch

  • Whether Sydney Water or the NSW government updates the Greater Sydney Water Strategy to include data centre demand forecasts.
  • The specific terms of any agreements between data centre operators and Sydney Water for recycled water supply.
  • Whether the facility's capacity expansion to 70 million litres per day proceeds on schedule and how much is allocated to data centres.

Sources

Zotpaper

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