1
2026-10-07Key Facts: 2026年9月, Sydney Water's Badu Yarragul Water Resource Recovery Facility in Kemps Creek, Western Sydney was officially commissioned. The project represents a total investment of approximately AUD 12亿, with a daily sewage treatment capacity of 35 megalitres (expandable to 70 megalitres). The facility is planned to prioritise supplying Reclaimed Water for cooling to data centres in Western Sydney, preventing data centres from "competing with residents for drinking water."
I. Project Overview: Western Sydney's Largest Water Resource Recovery Facility Goes Online
The Badu Yarragul Water Resource Recovery Facility is located in Kemps Creek, Western Sydney, delivered on time and on budget by contractor John Holland, and officially commenced operations on 2026年9月. The project is not only one of Sydney's largest water infrastructure projects in recent years, but also a landmark project for Australia in integrating Reclaimed Water into the urban water security system for emerging industries.
The facility has a daily sewage treatment capacity of 35 megalitres, roughly equivalent to the volume of 14 Olympic-sized swimming pools; in the future, it can be expanded to 70 megalitres/day based on regional development needs. The treatment capacity covers approximately 14万 households of new homes and businesses, and serves the Western Sydney International Airport and the surrounding population of 400万 (projected to 2056年).
II. Core Technology: Reverse Osmosis + Solar Power, Balancing Water Quality and Low Carbon
The facility adopts Reverse Osmosis (RO) technology to deeply treat sewage to a standard suitable for reuse in industrial, commercial, agricultural, public green space, and household non-potable applications. The treated Reclaimed Water is of stable quality and can be used for cooling towers, irrigation, toilet flushing, and other non-potable scenarios.
In terms of energy, the facility is equipped with a 4 MW solar power station, achieving approximately 50% energy self-sufficiency, significantly reducing operational carbon emissions. John Holland stated that the project is Australia's first water project to receive an 2.1 rating from the Infrastructure Sustainability Council, reflecting advanced concepts of green construction and low-carbon operation.
III. Controversy and Focus: Should Data Centres Have "Priority" Access to Reclaimed Water?
One of the most closely watched uses of the project is providing cooling water for Sydney's rapidly growing data centre industry. Darren Cleary, Managing Director of Sydney Water, said in an interview with ABC News: "The growth of data centres in Western Sydney does create real water demand, and the Kemps Creek facility provides a Reclaimed Water solution for this demand." The New South Wales Government's data centre guidance also explicitly states that Reclaimed Water should be prioritised for cooling.
However, this arrangement has also sparked controversy. Professor Stuart Khan, a water quality expert at the University of New South Wales, pointed out that the Greater Sydney Water Strategy did not fully consider the water demand of data centres when it was formulated. If Reclaimed Water originally planned to supplement drinking water sources is diverted to data centres, new alternative water sources may need to be found. Community environmental organisation Sweltering Cities has called for a moratorium on new data centre projects until clear regulation and protection of residents' water rights are in place.
IV. Economic Mechanism: Data Centres "Pay by Water Usage"
To balance the interests of new industries and existing residential users, both Sydney Water and the NSW Government have stated: the water supply infrastructure newly built for data centres will be funded by the data centre operators. Darren Cleary emphasised: "The construction of these facilities must be premised on not affecting ordinary customer services. Data centres must pay for their own water usage."
According to prices published by Sydney Water for 2026-27 年, the commercial Reclaimed Water price is AUD 3.07/kilolitre, lower than drinking water at AUD 3.41/kilolitre, and Reclaimed Water is not subject to drought surcharges. For large data centres, Reclaimed Water is not only lower in cost but also provides relatively stable water supply security during drought periods, offering strong economic appeal.
V. Global Implications: Synergy Between Emerging Industries and Water Resource Management
The practice of the Kemps Creek project offers three important insights for cities worldwide:
- Reclaimed Water is a key tool for balancing the development of emerging industries with residential water security—by shifting non-potable demands such as data center cooling to Reclaimed Water, high-quality drinking water resources can be freed up.
- A "user-pays" mechanism helps ease the pressure of public infrastructure expansion—making water-intensive emerging industries bear the additional water supply costs, avoiding the burden being shared by all residents.
- Large-scale water projects need to be incorporated into the city's long-term water resource strategy—data center water demand should be fully assessed during the water resource planning stage, rather than remedied after the fact.
VI. TIANYI TECH's View: Reclaimed Water Serves the Digital Economy with Broad Prospects
TIANYI TECH believes that with the rapid development of the digital economy such as artificial intelligence and cloud computing, data center cooling water demand will continue to rise. The experience of the Kemps Creek project in Sydney shows that a high-quality Reclaimed Water supply system has become important infrastructure for cities to attract and accommodate emerging industries. TIANYI TECH is willing to draw on advanced international practices to provide reliable Reclaimed Water and water-saving solutions for domestic data centers, Industrial Parks, and new city development.
About TIANYI LIMITED
TIANYI TECH focuses on wastewater treatment, Reclaimed Water Reuse, and water resource recycling, providing one-stop services including process consulting, solution design, equipment integration, engineering implementation, and smart operation and maintenance. The company keeps pace with the global forefront of water technology and is committed to creating water-saving, low-carbon, and sustainable water resource management solutions for its clients.
Sources: ABC News, Certified Strategic, Australia Data Centre Index, 2026年10月6日
