Australia admits error in assessment of gas power plant — ABC News Australia
Australia's New South Wales Department of Planning, Housing and Infrastructure has admitted an error: before setting environmental assessment requirements for a 675 MW gas power plant in Moss Vale, it did not consult key government agencies. The plant is intended to supply electricity to Cloud Carrier's data centre campus.
As ABC News Australia reports, in December 2025 the agency issued study requirements that the developer must complete before submitting a development application for the project. A community group asked the department whether it had consulted, among others, the New South Wales Environment Protection Authority and Sydney Water.
Official's letter and the department's response
A letter from a senior department official seen by ABC states that the requirements had to be issued quickly and without consultation because the project proponent threatened legal action. The law required the department to issue these requirements within 28 days of receiving a document describing the project.
The applicant is Nakar Property, the parent company of data centre operator Cloud Carrier. A Cloud Carrier representative said that the process of setting requirements and consulting government agencies falls within the department's remit. The company declined to comment on the legal correspondence, citing its confidentiality and legal privilege.
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A department representative confirmed that, due to an error, the agency did not consult government bodies before issuing the requirements. According to the representative, they are planned to be involved during the preparation of the environmental impact statement and after the development application for the project is submitted. The department did not answer whether the threat of legal action affected its decision not to conduct consultations.
Criticism of the procedure
Under the rules in force in December 2025, the department was required to consult relevant government agencies when preparing the requirements. This provision was removed from the regulation in July 2026.
Sue Higginson, a New South Wales Greens MP and planning spokesperson, called the situation a serious cause for concern. In her view, the involvement of relevant agencies in preparing the requirements is a critically important stage of the process, and delaying consultations may turn them into a formality.
The project has already sparked opposition in the Southern Highlands region. State Planning Minister Paul Scully said the power plant is at an early stage of the process. Australia's federal government had announced plans to introduce legislative restrictions for data centres operating on fossil fuels. Climate Change and Energy Minister Chris Bowen separately said gas generation for balancing the power system could be permitted, but data centres must supply themselves with renewable energy.
