Queensland to take data centre approvals away from local councils

The Queensland Government has announced that local councils will no longer plan and assess data centre applications, with a new system due to start in the coming weeks, according to an IR Global legal update published on 28 October 2026. The Government has said the framework will follow its earlier reforms for renewable energy projects. It argues the change is needed because many council planning schemes do not address data centres, which has led to confusion and uneven results.

The detail of the new framework has not been released, though the Government has indicated it will draw on the renewables approval pathway. That pathway has two layers. Part 6B of the Planning Act 2016 (Qld), in force since 18 July 2025, covers social impact assessment reports and community benefit agreements, and lets a regulation specify which development it applies to. The Planning Regulation 2017 (Qld) currently names wind farms, solar farms from 1MW and battery storage from 50MW, and makes the State Assessment and Referral Agency (SARA) the assessment manager. IR Global noted that a regulation can be amended without new legislation, so data centres could be brought in relatively quickly.

Under the renewables model, applications are impact assessable against State codes. A missing or inadequate community benefit agreement is not grounds for refusal unless the Minister has called in the application. The chief executive can waive the social impact assessment report or the agreement, and can send stalled negotiations to mediation.

If the model is applied, developers would face more work before lodging, including a social impact assessment report and a community benefit agreement with the local council and any neighbouring council whose community is affected. Assessment would be mandatory impact assessment, and submitters would gain third-party appeal rights, although they could not appeal community benefit conditions imposed under s 65AA. For new applications, subject to transitional arrangements, councils would stop being the assessment manager but would remain parties to the community benefit agreement.

The final framework must still settle which projects are captured, including any size threshold, which assessment requirements apply and how existing applications are treated, probably through an amending regulation and transitional provisions. One live case is Zerra DC's Western Downs Digital Park near Dalby, valued at about $32 billion, which Western Downs Regional Council is currently assessing. Anthropic has signed to lease the first of the four planned buildings. The council has not set a firm date for its decision, and Mayor Andrew Smith has said the State assured the council it will stay as assessment manager for this project.