Moss Vale gas plant faces temporary role as data centre developers push for grid power

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Moss Vale gas plant role

Highlights

Nakar Property is appealing Wingecarribee Shire Council's rejection of its $23 million gas-fired plant to support Cloud Carrier's planned $1 billion data centre in Moss Vale.
Cloud Carrier aims to switch from gas to grid power once a reliable connection is available, expecting annual savings of about $14 million and claiming lower emissions until 2029.
Wingecarribee Council disputes the grid access timeline and project planning, pushing for further investigations and proposing a 40 percent canopy tree requirement as part of draft consent conditions.

Court hearing tests project need and timeline

As reported by ABC News, the appeal centres on Nakar Property's bid to overturn Wingecarribee Shire Council's refusal of a development application for the $23 million project in the NSW Southern Highlands. The proposed gas-fired station is one of three plants planned to support a data centre campus proposed on the site by Sydney company Cloud Carrier.

Barrister James Smith, appearing for Nakar Property, tells the court the plant is required to guarantee constant power for data centre customers. He says Cloud Carrier's computer investment is about $1 billion and argues the business cannot sell capacity without firm electricity supply.

Smith also says the developers intend to shift to grid power as soon as dependable supply becomes available, citing annual savings of about $14 million from a grid connection. Referring to expert reports, he adds the plant is projected to produce lower greenhouse gas emissions than grid power until about 2029.

Grid access and planning conditions remain disputed

Wingecarribee Shire Council argues the assumed solution of switching to grid power has not been examined thoroughly enough. Barrister Michael Staunton tells Commissioner Nicola Targett that key investigation work should already have been completed and contends the project would still lack the secure supply needed to run the proposed data centre's full server capacity for two years.

During cross-examination, Staunton says that period could instead be used to negotiate with Endeavour Energy while waiting for a permanent connection tied to an upgrade of a nearby substation. After an adjournment, the council tenders draft conditions of consent during the hearing, including a requirement for canopy trees across about 40 per cent of the development site.

The case continues after the court visited Moss Vale to inspect the site on Tuesday, with air-quality, electrical and engineering experts appearing for cross-examination on their reports. The matter returns to court on Thursday for a third day of hearings.

In our earlier coverage of the AI data center boom, we examined how many large projects are being delayed or scaled back amid higher financing costs and construction setbacks. We also highlighted how power constraints and community pushback are increasingly forcing developers to secure reliable on-site electricity, adding another hurdle to keeping data center timelines and budgets on track.

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