Cloud Carrier has unveiled plans to construct one of the largest gas-fired power stations in New South Wales (NSW) to support a sprawling data-processing complex in the Southern Highlands. This ground-breaking initiative is aimed at addressing the huge, rapidly-increasing energy needs of artificial intelligence (AI) and other digital services. We are hoping to finish it in five to eight years.
The proposed site, only six kilometers outside of Moss Vale, will include an 846 megawatt power station. Moreover, in its first phase, it will contain three data centers. Currently, Cloud Carrier has already established a smaller data center on the premises, marking the beginning of what is envisioned as a comprehensive technological campus.
Details of the Power Station
To address this problem, Cloud Carrier has plans to construct 21 gas-fired generator halls driven by large, long-stroke reciprocating engines. Combined, these facilities will produce enough energy to power an astounding 700 megawatts (MW). This capacity would be enough to power more than 70,000 residential households with electricity.
Greg Jackson, a Cloud Carrier rep, stressed the importance of gas-fired gen for this effort. “For reliability and economic reasons, pipeline natural gas is the ideal fuel,” he said. Jackson pointed out that renewable energy has become an attractive option. The manufacturing company already has a mission to pivot its business operations towards these more sustainable products and electrified services.
The goals are straightforward. Yet the FS is still waiting for the Environmental Impact Statement (EIS) for the project to be produced. This Record of Decision will be key in identifying and mitigating potential ecological impacts related to the power station and data centers.
Growing Demand for Data Centres
The announcement coincides with the growing need for data centres in NSW. Today, the state is home to around 90 active data center projects and growing. Moreover, hundreds more have been authorized or are under development. Recognizing the economic opportunity that this sector can bring, the NSW government has shown a keen interest in helping this sector blossom.
Penny Sharpe, NSW Environment Minister said this investment in data infrastructure will be critical to the protection of nature. You know, you can’t go down the street without everybody wanting to tell you how important AI is, how important data centres are,” she said. Her comments are illustrative of a more general recognition to the critical role that data centers will play in our country’s technological advancements.
Leaders in the field have been sounding alarms about the unintended consequences of exponentially fast growth. Ty Christopher, Senior Vice President of Recurrent Energy underscored the importance of an electricity grid modernized to integrate new generation sources that would feed such facilities. For one, as Perry noted, “We need to fundamentally modernize the grid… We need a lot more generation just to provide power to these data centers.”
Environmental Considerations and Community Concerns
Although Cloud Carrier is primarily developing its energy expertise, environmental impacts continue to be a top concern for most of their stakeholders. Toby Walsh, a prominent researcher in AI and digital services, cautioned against overlooking the infrastructure’s physical size and resource demands. It will waste valuable water,” he continued, warning that, “If we’re not careful, this could become a major and unnecessary drain on electricity.
Jessica Ryall expressed her reservations regarding the accompanying gas plant, stating, “We’re fine with the data centre; it’s the gas plant attached to it that’s the issue.” This feeling is very familiar to those of us working to advance sustainable energy approaches in the face of increasing environmental denunciations.
In anticipation of these conversations, Jackson recognized that responsible rollout strategies would be needed. He underscored Cloud Carrier’s promise to utilize more renewable energy options as they enter the market. Photo by Bodhi on Adobe stock This is the direction we’re headed, though, toward a more renewable fuel. As new ones come along, we’ll modify our plant to use them, he said.

