Data centres have the potential to unlock significant new infrastructure investment and direct jobs in construction and operation, but without proper planning and regulation, they risk significant impacts on the electricity grid, local communities, workers, and on nature, water and climate. Australia has already attracted significant investment for the digital economy and data centres may become an important part of Australia’s industrial and infrastructure landscape if these opportunities are realised.
Data centres are also energy hungry. The Australian Energy Market Operator (AEMO) projects that data centre demand could grow from around 3 terawatt-hours (3 TWh) today to as much as 30 TWh by 2035. Concurrently, Australia is racing to replace fossil fuels with clean energy – and use that clean energy to power burgeoning green export industries. Without effective planning, the surge in demand risks pushing up retail power prices, significantly increasing climate pollution, slowing the transition to renewables, the realisation of a Future Made in Australia, and straining electricity grids and scarce water resources.
If communities and civil society are not adequately engaged, a backlash against the sector is inevitable. We have a once in a generation opportunity to shape this industry so that it supports cheap, clean power, stronger regional economies, secure essential services and employment opportunities, rather than undermining them.
Public Interest Principles for Data Centres
The following principles are grounded in existing policy levers, research, and on-theground experience, recognising the diversity and importance of the issues outlined below. There is a clear need for a whole of government approach to the management of data centres. Policy and decision makers must manage the rapid rise of data centres and what they mean for planning, energy, water, jobs and communities.
To ensure the maximum public benefit with the lowest amount of public harm all new data centre developments must:
- Be powered by 100% additional renewable energy
- Strengthen grid stability
- Be appropriately sited to minimise impacts on nature and land use
- Minimise embodied emissions and maximise efficiency and circularity
- Use water resources responsibly
- Operate with transparency
- Commit to earning and delivering ongoing social licence
- Support the training and upskilling of the workforce
This joint statement has been developed by a coalition of climate and environmental groups, unions, peak bodies and the renewable energy industry. The principles that follow are designed to guide policy makers to capitalise on these opportunities while protecting people, nature, water and the power system we all rely on. This statement does not reflect any of the signatories’ positions on artificial intelligence (AI) use or regulation – which are important conversations, but sit outside the scope of the Government’s National Data Centre Principles – while recognising perceived AI demand is a key driver of data centre growth and must be managed consistently with Australia’s climate, water, and energy goals.
Read more in the full statement.
