A cross-party inquiry in New South Wales, Australia’s most populous state, found data centre approvals failed to account for cumulative effects on water, electricity and infrastructure but stopped short of recommending a moratorium. The report called for a comprehensive data centre strategy and better coordination among participants in the approvals process. Its findings come as lawmakers seek to manage an artificial intelligence-led construction boom that McKinsey estimates could be worth $7 trillion globally by 2030, while communities resist new facilities. Developer NextDC and ChatGPT owner OpenAI are awaiting approval for a data centre in the state, and residents in one suburb have prompted the withdrawal of a smaller project. Committee chair Abigail Boyd, an upper house member from the Greens party, criticized the decision to remove moratorium recommendations and warned that data centres could consume very large volumes of energy and water.