CDC Data centers has proposed community benefits AU$225 million for a planned 1.4 gigawatt data center campus near Wagga Wagga, New South Wales, putting local investment at the center of one of Australia’s largest proposed digital infrastructure developments. The package includes a potential AU$150 million commitment tied to the proposed land sale and another AU$75 million for community initiatives. Wagga Wagga City Council has stipulated that any land sale would require a binding agreement worth at least AU$150 million, equivalent to 1% of the project’s estimated AU$150 billion development cost. The proposed commitments remain conditional on development approval and the project proceeding as planned. 

CDC Links Community Investment to Development Approval

The proposed package would operate through a Voluntary Planning Agreement (VPA), although CDC has not published its final terms. The company has outlined potential funding for housing, sports, recreation, arts, culture, education, skills development, workforce training, environmental improvements and community infrastructure. Local residents would also help identify priorities for the proposed investment, giving the community a role in determining how the funds could support the region.

For Wagga Wagga, the proposal raises a broader question about how regional communities can share in the economic benefits of large-scale digital infrastructure. Data center developers increasingly need to demonstrate local value alongside their plans for land, electricity and supporting infrastructure. CDC’s proposed package places community investment within that discussion, while the council’s minimum agreement requirement establishes a financial condition for the proposed land transaction. However, the package’s ultimate impact will depend on the final agreement, the delivery of individual initiatives and the project’s ability to secure the necessary approvals.

1.4GW Campus Targets Large-Scale AI Infrastructure Demand

CDC’s proposed development would comprise four data center buildings at 216 Ashfords Road, Gregadoo, according to the project’s scoping report. The council’s land-sale resolution refers to 232 Ashfords Road, while the company estimates total development costs of approximately AU$15 billion and power demand of up to 1.4GW. CDC intends to deliver the campus in stages, with electrical systems and other supporting infrastructure forming part of the development. The proposed capacity signals the scale of the electricity infrastructure required, although the project remains subject to assessment and does not yet have a confirmed final grid connection for the full 1.4GW.

The site’s proximity to existing transmission infrastructure influenced CDC’s selection of the location. The company has started the connection process with Transgrid through Lumea and says it will fund its own electricity infrastructure, including any required grid upgrades. This approach places responsibility for project-specific electrical infrastructure on the developer, but it does not establish that the proposed capacity has secured a final connection agreement. The NSW Government will assess the project through its State Significant Development process, which remains separate from the council’s authorisation of the proposed land sale.

Water Use and Community Concerns Shape Project Debate

The proposal has also drawn community concerns, highlighting the scrutiny that accompanies large infrastructure developments in regional areas. CDC founder and CEO Greg Boorer has emphasised the need for data center developers to address community concerns as project scales grow. He stated that CDC data centers do not consume water for primary cooling and will not draw on local Riverina water supplies. The company’s position addresses one potential source of local concern, although residents will also have an interest in the project’s electricity requirements, supporting infrastructure and broader effects on the region.

CDC’s proposal therefore combines a substantial community-benefits package with an infrastructure project whose final capacity, grid arrangements and development conditions remain subject to further steps. The proposed AU$225 million package could create significant funding opportunities for local services and facilities, but its value will ultimately depend on binding terms and delivery. For the regional data center sector, the project illustrates how community commitments, electricity access and planning approvals increasingly intersect in decisions about large-scale infrastructure. The next milestones will be the development assessment, the finalisation of the proposed community agreement and progress toward a confirmed grid connection.