NSW Department of Planning and Environment

SSD Warehouses and Data Centres

The NSW Government is committed to supporting economic recovery and employment opportunities following the COVID-19 pandemic. The NSW Planning system is an essential tool to accelerate the delivery of projects, create jobs, and keep the economy moving.

On 1 June 2021 amendments to the State and Regional Development SEPP commenced to temporarily allow more warehouses and data centres to be assessed as State significant development (SSD), providing a clear and more certain planning pathway for warehouses and data storage facilities.

Why focus on warehouses and data centres?

The department has identified warehouses and data centres as types of development well placed to support the State’s short-term economic recovery from the COVID-19 pandemic.

The demand for data centres and warehouse development is growing due to rapid technology advancements and a boom in e-commerce sectors. This is coupled with a need for larger off-site data storage and a shift to keeping business locally within NSW.

Warehouses and data centres are quick to build and generate a high number of jobs that will help the State’s economic recovery.

What are the changes?

The amendments change the way SSD thresholds for development of data centres are measured from capital investment value (CIV) to total power consumption. These changes will more accurately reflect the scale, complexity and potential impact of this type of development.

The amendments will temporarily change the SSD threshold for:

  • data centres from $50 million CIV to 10 megawatts total power consumption (which roughly equates to a CIV of $40 million) for a two-year period, then to 15 megawatts after that.
  • warehouses from $50 million CIV to $30 million CIV for a two-year period, then reverting to $50 million CIV.

Complementary changes to complying development

The department is undertaking further review of existing complying development provisions to enable straight forward development of warehouses and data centres through the complying development pathway. This work is complementary to the SSD amendments to provide more streamlined pathways for a broader range of warehouse and data centre development to support economic recovery.

More information

The changes to SSD for warehouses and data centres commenced on 1 June 2021 and will end on 31 May 2023.

They are part of the suite of ongoing initiatives to support economic recovery and build on other council support and stimulus measures such as the Public Spaces Legacy Program being delivered under the Planning Reform Action Plan.

For more information email systemsproductivity.policy@planning.nsw.gov.au

Page last updated: 06/12/2022