"The new national interest framework for data centres and artificial intelligence (AI) will help prevent cannibalising of our precious energy and water resources," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.
"The Government has moved properly and effectively through establishing the framework on what will be key economic infrastructure going forward.
"Australia's power grid is not ready for the projected growth in power demands for these centres, and the consequences could be severe for homes and businesses.
"Today we are not ready and the consequences of remaining unready could be very severe – so I welcome the Government's recognition that it is time to act.
"The National Electricity Market (NEM) may experience demand growth from data centres of 35-70 terawatt hours (TWh) over the next five years. Given current total NEM demand is 180 TWh, this would be a colossal rate of change with huge implications for the energy system and other energy users.
"Data centres are critical infrastructure, there are large potential future gains from their growth and they enable the delivery of the new national AI Plan. There are also significant uncertainties – so it is critical we are prepared and that we are conscious of any adverse outcomes across the economy," Mr Willox said.
