CDC Data Centres has proposed a community-benefits package worth up to AU$ 225 million for its planned 1.4GW data centre campus near Wagga Wagga, NSW. Wagga Wagga City Council says any land sale would require a binding agreement worth at least AU$ 150 million, equivalent to at least one percent of the estimated AU$ 15 billion development cost. Combined with a separate AU$ 75 million proposed by CDC for community initiatives, the commitments could exceed AU$ 225 million.
The package is conditional on the project being approved and proceeding as planned. CDC describes the agreement as a proposed Voluntary Planning Agreement (VPA), although its final terms have not been published.
CDC said the money could support housing, sport and recreation, arts and culture, education and skills, workforce development, environmental improvements and community infrastructure. The company said local people would have an opportunity to help identify priorities.
“This is not about building a data centre and walking away. We want to be part of Wagga Wagga’s future,” CDC founder and CEO Greg Boorer said in the announcement. “If this project proceeds, the community should see real, visible and lasting benefits from the investment.”
On 12 October, Wagga Wagga City Council authorised its general manager to enter into a contract to sell the land to CDC. The decision was made in a closed session. The proposed development remains subject to assessment by the NSW Government under its State Significant Development process.
A major regional proposal
The proposed campus would comprise four data centre buildings at 216 Ashfords Road, Gregadoo, according to the scoping report. The council’s land-sale resolution refers to 232 Ashfords Road. CDC estimates the development would cost approximately AU$ 15 billion and have total power demand of up to 1.4GW.
The project is intended to be built in stages, with associated electrical and other infrastructure. CDC has identified the area’s proximity to existing transmission infrastructure as a factor in its site selection.
The scoping report says the connection process has commenced with Transgrid through Lumea. CDC says it would pay for its own electricity infrastructure, including any upgrades needed to connect to the grid.
However, the headline capacity remains a proposal rather than secured demand. CDC has not announced a final connection agreement for the proposed 1.4GW campus. The detailed infrastructure requirements are expected to be examined through the environmental assessment.
The community package follows residents seeking more information about the project. About Regional reported on 2 October that two petitions opposing the proposal had been launched within 24 hours of it becoming public. ABC News reported on 8 October on a mixed local response, including cautious support from advocacy group Committee 4 Wagga.
CDC says its data centres do not consume water for primary cooling purposes and will not draw on local Riverina water supplies. The detailed water-management plan is expected to form part of the environmental assessment.
Boorer emphasises engagement
Boorer has recently spoken about the need for data centre developers to address community concerns as the scale of proposed projects grows. In an interview with ABC News published on 30 September, Boorer said CDC would hold community engagement and education sessions. He also expressed confidence that sourcing finance for the Gregadoo project would not be an issue, although no financial close or fully committed funding package for the development has been announced.
In an interview with About Regional published in October, Boorer described the proposal as a “once-in-a-generation opportunity” for Wagga Wagga and the wider Riverina. The outlet reported that local residents had raised concerns about the project’s potential impacts.
The benefits package is a more tangible proposal than general statements about potential economic impact, but its value to the region will depend on its final terms, the timing of contributions and whether the project proceeds. CDC has not yet published a final agreement setting out payment milestones or how the package would be implemented if the campus were developed in stages.
The company says the development could generate construction activity, local procurement opportunities and skilled employment. Those benefits also remain prospective, pending planning approval, financing, customer demand and construction commitments.
Council’s authorisation of the land sale is separate from development consent: the NSW Government remains responsible for determining the State Significant Development application. CDC has planned community information sessions at the Transgrid Discovery Hub in Wagga Wagga as part of its engagement programme, with further engagement expected as the proposal progresses.