John GarnautDario AmodeiOlivia ShenDena JacobsData Centre AustraliaUnited States Studies CentreAnthropicAlbanese governmentInfrastructure NSW

Anthropic pushes for massive NSW data centre expansion, seeking up to 5GW of capacity; national cabinet weighs new AI energy and water rules

Anthropic, the US tech giant behind the AI chatbot Claude, plans to expand its data centre capacity in New South Wales to 5 gigawatts, more than tripling Australia's current infrastructure. Meanwhile, the national cabinet is discussing new energy and water regulations for AI data centres amid environmental concerns.

Happy Mag Happy Mag+2 sources26 August 2026 · 04:41 UTC
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Anthropic, the US tech giant known for its AI chatbot Claude, is pushing for a significant expansion of data centre capacity in New South Wales, seeking up to 5 gigawatts—a figure that exceeds Australia’s current total data centre capacity of 1.6GW. This ambitious proposal, which could require tens of billions in investment, comes as the company navigates regulatory uncertainties in the US.158

Internal emails from the NSW government indicate that Anthropic's CEO, Dario Amodei, visited Sydney shortly after discussions in March, where he signed a memorandum with the Albanese government. The proposed capacity would more than triple the existing infrastructure, with projections suggesting national capacity could rise to 3.9GW by 2030.34

According to Olivia Shen, Director of Strategic Technologies at USSC, Australia’s abundant renewable energy resources and stable political environment make it an attractive destination for US AI companies. She noted, “With uncertainty about the regulatory landscape in the US, including a lot of local opposition to data centres, it makes sense for Anthropic to want to diversify its compute and its business outside of the United States.”1011

As Anthropic seeks to establish its presence, the national cabinet is also weighing new regulations on energy and water use for AI data centres, responding to community concerns about environmental impacts. NSW has announced that qualifying projects can have development applications assessed within 75 days if they meet energy, water, environmental, and community requirements.6

Key Insight
“The proposed 5GW would exceed three times Australia's current 1.6GW capacity, with national capacity projected to reach 3.9GW by 2030. Anthropic's interest stems from US regulatory uncertainty, as noted by USSC's Olivia Shen, and NSW has fast-tracked approvals for qualifying projects within 75 days.”
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CuriousCats studied:
1
Happy MagHappy Mag
“US tech giant , creator of the AI chatbot Claude, has revealed plans to build up to 5 gigawatts of data centre capacity in NSW, more than triple Australia’s entire current infrastructure.”
Happy Mag →
2
United States Studies CentreUnited States Studies Centre
“Internal NSW government emails reveal AI giant Anthropic was interested in building up to 5 gigawatts of AI data centre capacity in NSW alone, a capacity that would be three times the size of Australia's entire data centre infrastructure.”
United States Studies Centre →
3
Oz Arab MediaOz Arab Media
“According to , internal NSW government emails show that Anthropic expressed interest in locating up to five gigawatts of AI training data-centre capacity in the state.”
Oz Arab Media →
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