Sydney councils have raised concerns about the negative impacts of datacentre developments on their communities, including increased blackouts, noise pollution, and competition with residential development. Lane Cove Council reported a rise in blackouts and noise complaints since the expansion of datacentres, while the City of Ryde said a cluster of datacentres was competing with residential development opportunities. Penrith city council urged the state government to pause further approvals until utility servicing impacts are fully understood. The Western Sydney Regional Organisation of Councils warned that the cumulative impact of noise, heat, and emissions from datacentre clusters could exacerbate existing pressures on electricity networks, water systems, and local environments. Data Centres Australia acknowledged the industry's electricity and water requirements related to cooling and said developers were investing in renewable energy power purchase agreements. However, the industry body cited cost and supply barriers to shifting reliance off drinking water.