New data centres in Australia will be required to deliver "at least as much energy" into the grid as they take out under rules being introduced as part of the government’s AI-driven data centre plan.
Under the government's proposed mandatory standards, new data centres will be required to underwrite power supply, minimise water use, and maximise energy efficiency.
At a meeting of energy ministers from around Australia last week participants reviewed the government’s proposed framework for data centres.
With the exception of Queensland and the Northern Territory, energy ministers agreed new data centres will need to bring their own renewable energy to the grid.
The government said an influx of data centre applications will allow Australia to be selective.
Climate Council senior researcher, Genevieve Henderson, said Australia already has at least 90 new data centres in the pipeline.
“Ministers agreed on the principle, but there are important details left unanswered: like exactly how and when data centres will be expected to comply with these requirements,” she said.
“Every month without these stronger rules in force means more of that growth could be powered by coal and gas instead of renewables – pushing up both power prices and climate pollution.”
The federal government said it is planning to legislate the new plan in 2027.
The Australian Energy Market Operator (AEMO) expects electricity use from data centres to triple by 2030.
It will reach nearly 12 TWh in 2030, and account for roughly 10% of total National Electricity Market (NEM) demand by 2050.
AEMO group manager for onboarding and connections, Margarida Pimentel, said the AEMO recognises the critical role data centres play in Australia’s economy and supports their continued development as part of the energy transition.
Due to their scale, concentration and continuous operation, Pimentel said data centres require careful management of system strength, voltage stability and transmission investment.
She said location also plays an important role in achieving efficient outcomes.
“Coordinated planning to align new transmission investment with areas of growing demand, alongside data centre developers considering locations in regions with abundant renewable energy resources, can help support lower-cost outcomes for consumers while maintaining system reliability and security,” she said.
At the end of the March 2026 quarter, 11 large-scale projects exceeding 5 MW represented 5.4 GW of maximum demand in the NEM transmission pipeline, with 60% in New South Wales and 40% in Victoria.