The federal government has released a plan for data centre investment in Australia to safeguard long-term water security and the nation’s clean energy transition.
The plan entitled Expectations of data centres and AI infrastructure developers sets out five priorities pointing out that investment should:
- Prioritise Australia’s national interest
- Support Australia’s energy transition
- Use water sustainably and responsibly
- Invest in Australian skills and jobs
- Strengthen research, innovation and local capability
Minister for Energy & Climate Change, Chris Bowen, said the government expects data centres and AI infrastructure operators to underwrite new renewable power supply, pay their full share of new grid connectivity so costs are not passed to consumers or businesses, and support Australia’s energy transition through demand flexibility mechanisms.
“The government also expects hyperscalers to make compute available to Australian start-ups seeking to create Australian AI, and partner with our innovation ecosystem,” he said.
Australia already attracts strong global data centre investment, and this is expected to escalate over the next decade.
Australian Conservation Foundation CEO Adam Bandt said the government should be commended for making it clear that it’s not open season for data centres that are eyeing off Australians’ precious water and energy supplies.
“Data centres guzzle power and water and they could derail Australia’s clean energy transition unless they are properly regulated,” Bandt said.
“We welcome the government’s direction and the inclusion of expectations relating to additional renewable energy supply and sustainable and efficient water use.
“However, giving these big tech corporations guidelines is not enough,” he warned.
“If you want to build a data centre in Australia, you should be compelled to build the renewables and water recycling infrastructure to service it.”