For Southern Highlands cattle farmer Ros Murphy, the issue has become deeply personal.<\/p>\n
![\"Reporter](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/8e16bf81c2a606548515e5212984ff534a285ad4.png\")
Reporter Sarah Greenhalgh with farmer Ross Murphy Credit: 7NEWS <\/p>\n
Her family has bred beef cattle on the same property near Moss Vale since 1927. The farm represents generations of history, hard work and resilience. Now, she fears its future could be threatened by plans for a large data centre and gas-fired power station nearby.<\/p>\n
\u201cI know nothing about AI,\u201d Murphy said. \u201cTo me AI means artificial insemination.\u201d<\/p>\n
She worries that emissions from the proposed development could contaminate her livestock and jeopardise the farm\u2019s future.<\/p>\n
\u201cIf they\u2019re eating it and drinking it every day and it\u2019s going into their bodies, it\u2019s going to leave a residue,\u201d she said. \u201cThe meatworks won\u2019t take them.\u201d<\/p>\n
The invisible infrastructure behind the internet<\/p>\n
Despite their low public profile, data centres underpin almost every digital interaction.<\/p>\n
Professor Ali Mirjalili, an AI researcher at Torrens University, says they have become as essential as roads, airports and rail networks.<\/p>\n
![\"Professor](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/0f87d0fabb60ada06d34215703cd61efacfc4a3a.png\")
Professor Ali Mirjalili, an AI researcher at Torrens University Credit: 7NEWS<\/p>\n
\u201cEvery time we use social media, every time we use our banking system, our government websites, data centres are doing the job behind the scenes,\u201d he said.<\/p>\n
The next generation of facilities goes even further.<\/p>\n
\u201cWe don\u2019t even call them data centres,\u201d Professor Mirjalili continued. \u201cWe call them hyperscale AI factories because technically they manufacture intelligence. They don\u2019t just store data.\u201d<\/p>\n
Australia currently has around 160 operational data centres, with another 90 proposed or under construction. Most are located in major cities where access to power, telecommunications infrastructure and customers is strongest.<\/p>\n
Professor Mirjalili says Australia\u2019s political stability, available land and renewable energy potential make it an attractive destination for global investment.<\/p>\n
Billions flowing into Australia\u2019s digital economy<\/p>\n
Investment is surging.<\/p>\n
Australia was the world\u2019s second-largest destination for data centre investment last year, behind only the United States<\/a>.<\/p>\n Belinda Dennett, founder and CEO of industry body Data Centres Australia, says the facilities are critical to supporting everyday services.<\/p>\n \u201cYour Netflix<\/a>, your Spotify, your email, your cloud, your OpenAI prompts \u2014 all that happens in the servers and chips you see here,\u201d she said during a tour of one facility.<\/p>\n Dennett argues the industry represents a major economic opportunity and positions Australia to compete in the global AI race.<\/p>\n \u201cIf Australia wants to be in this market, we need to move quickly,\u201d she said.<\/p>\n Power demands spark concern<\/p>\n The industry\u2019s rapid growth is also driving unprecedented demand for electricity.<\/p>\n Data centres currently consume around 2 per cent of Australia\u2019s electricity. By 2030, that figure is projected to rise to around 6 per cent, with some forecasts suggesting demand could reach between 10 and 15 per cent by 2040.<\/p>\n Professor Mirjalili warns Australia is not prepared.<\/p>\n \u201cWe simply do not have proper infrastructure and we don\u2019t generate enough electricity to be able to power these hyperscale data centres,\u201d he said.<\/p>\n He likens the facilities to \u201cspaceships\u201d landing in Australian cities.<\/p>\n \u201cWhen you\u2019re talking about a few hundred households, which used to be the case in traditional data centres, it wasn\u2019t an issue,\u201d he said. \u201cBut if you bring 10 of those spaceships, it\u2019s like you\u2019re adding five million or 10 million new households. Can we manage that? I don\u2019t think so.\u201d<\/p>\n Professor Mirjalili also warns that, without major investment in energy infrastructure, Australians could ultimately face higher electricity prices.<\/p>\n \u201cThere are no laws requiring them to source new energy,\u201d he said. \u201cThey heavily rely on existing water and electricity infrastructure.\u201d<\/p>\n Dennett argues the solution is not slowing construction but accelerating investment in energy generation.<\/p>\n \u201cWhat we need to do is speed up sorting out the power issue,\u201d she said.<\/p>\n A government spokesperson told us: \u201cData centres are one of the biggest drivers of new energy demand. We\u2019re acting to make them an asset to the energy grid, not a strain.\u201d<\/p>\n \u201cIf data centres want to benefit from Australia\u2019s energy grid, we think they should do their bit to strengthen it. It\u2019s clear that the overwhelming majority of states agree.\u201d<\/p>\n Water use under scrutiny<\/p>\n Cooling thousands of servers also requires significant amounts of water.<\/p>\n Sydney\u2019s<\/a> data centres currently consume about 3.5 billion litres of drinking water annually, although Sydney Water has projected demand could rise sharply over the next decade.<\/p>\n Dennett disputes those forecasts, arguing they are based on maximum peak demand rather than actual annual usage.<\/p>\n \u201cThat\u2019s not how it works,\u201d she said.<\/p>\n Communities push back<\/p>\n In Melbourne\u2019s<\/a> West Footscray, locals say the expansion of nearby data centres has exposed shortcomings in Australia\u2019s planning system.<\/p>\n Resident Sebastian Leith says he accepts data centres are necessary but believes they should not be built so close to residential neighbourhoods.<\/p>\n \u201cThey\u2019re a necessary evil,\u201d he said.<\/p>\n \u201cThey could do so much for Australia. This one in particular has been handled so badly.\u201d<\/p>\n Residents have raised concerns about construction disruption, noise, pollution, blackouts and impacts on property values.<\/p>\n Sean Brown, who lives near a facility owned by Australian company NEXTDC, says community consultation has been inadequate.<\/p>\n \u201cNon-existent,\u201d he said.<\/p>\n \u201cNo one from the data centre industry has contacted us.\u201d<\/p>\n Brown has also been monitoring air quality around the site because of concerns over emissions from diesel backup generators.<\/p>\n \u201cNo Australian child should be exposed to this risk just so people who don\u2019t live here can make millions of dollars,\u201d he said.<\/p>\n NEXTDC said it operated the generators under \u201cestablished operational procedures\u201d, adding that the activities were carried out in line with \u201crelevant planning approvals, environmental requirements, safety regulations and compliance obligations.\u201d<\/p>\n Moss Vale proposal raises environmental concerns<\/p>\n In Moss Vale, community opposition centres on a proposal to power a major data centre using three gas-fired power stations.<\/p>\n If approved, it would become one of NSW\u2019s<\/a> largest gas-powered facilities.<\/p>\n Greens<\/a> councillor Heather Champion argues the proposal is incompatible with Australia\u2019s climate commitments.<\/p>\n \u201cWhy would we build a gas plant that\u2019s going to be pumping out two million tonnes of carbon emissions every year?\u201d she said.<\/p>\n The site\u2019s owner, Nakar Property, declined an interview but states in planning documents that renewable energy options were considered before gas was deemed the most suitable solution. The company says predicted emissions are unlikely to create unacceptable environmental impacts.<\/p>\n Balancing opportunity and impact<\/p>\n As artificial intelligence becomes increasingly embedded in everyday life, Australia\u2019s digital infrastructure will continue to expand.<\/p>\n Supporters argue data centres are essential to economic growth, technological innovation and national competitiveness.<\/p>\n Critics say the industry must not outpace planning, infrastructure and environmental safeguards.<\/p>\n Professor Mirjalili believes the answer lies somewhere between the two.<\/p>\n \u201cWe need to be moving fast,\u201d he said.<\/p>\n \u201cBut we need to be moving very cautiously at the same time.<\/p>\n \u201cWe don\u2019t want to compromise our natural resources at the cost of these data centres.<\/p>\n \u201cIt\u2019s a good opportunity, but it should be managed properly.\u201d<\/p>\n You can watch The Revolution: Inside Australia\u2019s Data Centre Boom on 7plus<\/a><\/p>\n Full statement from NEXTDC:<\/p>\n M3 Melbourne is equipped with backup diesel generators to support the continuity of critical digital infrastructure and services relied upon by businesses, government and the broader community in the event of a disruption to grid power.<\/p>\n NEXTDC operates these systems under established operational procedures and undertakes routine testing and maintenance activities to ensure operational readiness. These activities are conducted in accordance with relevant planning approvals, environmental requirements, safety regulations and compliance obligations. We continuously monitor and manage our operations to support the safe, reliable and responsible operation of the facility.<\/p>\n Safety has always been a core priority for NEXTDC and is embedded throughout every part the design, construction and operation of our facilities. Through rigorous engineering standards, comprehensive risk management practices and ongoing engagement with regulators and emergency services, we maintain multiple layers of protection to support the safe, resilient and reliable operation of our critical infrastructure.<\/p>\n Regarding the transformer explosion (which occurred in West Footscray June 7th, 2026), NEXTDC understands there was an interruption to mains power experienced as a result of an external electricity network incident in the surrounding area. NEXTDC can confirm there was no incident within the M3 Melbourne data centre in West Footscray that contributed to this incident.<\/p>\n In accord with delivering 24\/7 power availability, NEXTDC\u2019s backup power systems responded immediately, maintaining uninterrupted operations throughout this external supply incident. Once the energy provider restored mains power, the M3 Melbourne facility seamlessly transitioned back to normal grid supply. This event was not caused by NEXTDC and as noted did not occur within the M3 Melbourne facility.<\/p>\n![\"Belinda](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/78953b9e4db530da2ea359d8d382679bb62a3036.png\")
Belinda Dennett, CEO Data Centres Australia Credit: 7NEWS<\/p>\n![\"Reporter](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/c0c416bf22fefd8230459a4a23694fc7c44df329.png\")
Reporter Sarah Greenhalgh with West Footscray resident Sebastian Leith Credit: 7NEWS<\/p>\n![\"Sean](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/4f3e1179df3a5596709f5ae083c397640673e863.png\")
Sean Brown, West Footscray resident Credit: 7NEWS<\/p>\n