Australia reveals national expectations for data centres

Rendered image of bright, futuristic data centre (octopus data heat)
Image: Shutterstock

With global investment in data centres accelerating, the Australian Government has revealed the next steps in its National AI Plan with the release of National Data Centre Expectations.

These expectations are designed to set clear, nationally consistent signals; support smoother engagement with communities; facilitate stronger coordination with states and territories; and enable faster progress for projects aligned with Australia’s priorities.

Related article: AEMC proposes new grid standards for data centres

These five expectations are:

  • 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.

The government says it 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.

Through regulatory processes, the Australian Government will prioritise proposals most closely aligned with these expectations, and the overarching national expectations will work alongside existing laws and help guide local decisions in each state and territory.

Minister for Climate Change and Energy Chris Bowen said, “It’s no surprise that Australia is an attractive investment destination for data centre technology. We’re really proud of our abundant renewable energy resources, our sunshine and wind has already helped us reach 51% renewables on our grid.

Related article: Power-hungry data centres threaten Australia’s energy grid. Here are three steps to make them more efficient

“Data centres have great potential to support our grid and expand new renewable investment, but it’s important we work together across jurisdictions and with industry to get the investment settings right so that we can continue to keep our system secure and energy prices low for all consumers.”

Stay on top of the latest energy news and insights by subscribing to our free weekly e-newsletter and digital magazine.

Previous articleSynergy inks long-term PPAs for new wind projects in WA
Next articleRegulator takes ENGIE to court in Victoria