Data centres setting up shop in Australia as part of the AI boom will be required to contribute to Australian energy and skills under a proposal put to the federal government by an alliance of industry groups, unions, community groups and environmental organisations today.
The plan, delivered to Industry Minister Tim Ayres and Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton, would see data centre operators invest in new renewable energy to power their operations instead of pushing up the price of wholesale power, use water responsibly and train local apprentices rather than siphoning skills away from national priorities like housing.
The plan has been endorsed by the Clean Energy Council, Electrical Trades Union, the Australian Conservation Foundation, WWF-Australia, Smart Energy Council, RE-Alliance, Climate Energy Finance, Nature Conservation Council of NSW, Environment Victoria, Queensland Conservation Council, Sunrise Project Australia and Carbon Zero Initiative.
The eight principles are:
1. Be powered by 100% additional renewable energy
2. Strengthen grid stability
3. Be appropriately sites to minimise impacts on nature and land use
4. Minimise embodied emissions and maximise efficiency and circularity
5. Use water resources responsibly
6. Operate with transparency
7. Commit to earning and delivering ongoing social license
8. Support the training and upskilling of the workforce
"Data centres guzzle power and water, and big tech corporations could derail the clean energy transition unless we regulate them," said Australian Conservation Foundation CEO Adam Bandt.
"If you want to build a data centre, you should have to build the renewables and water recycling to power it. Big tech corporations should be forced to do their fair share, so they don't drain our resources."
"Electricity demand from Australia's data centre growth is expected to rise from 1.35 GW today to between 5-8 GW by 2035. Without new supplies of electricity to meet this demand, this will place increased pressure on all existing generation resources," said Jackie Trad, CEO of the Clean Energy Council.
"With the expected growth in demand it's important Australia has a sustainable solution to meet the supply needs of new data centres. Data centres powered exclusively by new renewable energy can grow the existing supply pool without increasing pressure on existing residential and commercial electricity users," she said.
ETU National Secretary Michael Wright said: "Australia needs tens of thousands more electrical workers to wire our nation into the 21st century - including by building data centres. Data centres must open doors for young Australians to train for skilled, rewarding electrical careers, not just siphon existing skills away from important national priorities like housing and energy transition. Data centres that invest in Australian energy and skills are welcome here - ones that drive up power prices, take drinking water and lock young people out of jobs are not," he said.
"Data centres can play a role in Australia's future, but only if they're built in the right ways and right places," said Rob Law, WWF-Australia's senior manager, energy transition. "That's why we need strong guardrails to ensure new data centres are highly water-efficient and powered by 100% new build renewables. They must be sited smartly - away from high-value biodiversity areas and with water availability, First Nations interests and regional impacts front of mind," he said.
Clean Energy Finance director Tim Buckley said: "Data centre investment is red hot, so we expect our governments to ensure that giving approvals to new infrastructure projects comes with clear community benefits - after all, the data centres can only be built leveraging the existing publicly funded water and grid infrastructure we have all paid for. Approvals should be conditional upon new long-term firmed renewables PPA as a pre-requisite. Approvals should come with clear community alignment and best practice, including developing a green energy powered future made in Australia," he said.
Carbon Zero Initiative project lead Alexander Hoysted said: "Data centres can support Australia's clean energy future, but only if new demand brings new renewables with it. Clear guardrails now will benefit households, communities and the grid. Done right, data centres can accelerate Australia's clean energy transition by anchoring new renewable generation and storage. We need to ensure growth strengthens the grid and expands supply, rather than competing with households and industry for limited capacity," he said.
"We cannot allow data centres to drain renewable energy supplies, suck up precious water resources, or degrade high biodiversity land," said Jacqui Mumford, CEO of Nature Conservation Council of NSW, Jacqui Mumford. "The NSW government needs a plan to manage data centre growth and keep the renewable energy transition on track," she said.
"A $10 billion data centre has been proposed for the former Hazelwood power station site in Gippsland's Latrobe Valley - a region already grappling with the water legacy of coal," Environment Victoria climate campaign manger Joy Toose said. "Gippsland's waterways are already under intense pressure. Without careful planning and regulation, data centres threaten to add new and unacceptable water and energy demands onto already stressed systems - at the expense of regional communities and ecosystems," she said.
Queensland Conservation Council acting director Anthony Gough said: "We need to make sure that new energy demands come with their own well-planned renewable energy and water supply arrangements to be able to protect our communities and unique natural environments. Despite the Queensland Government rhetoric of being open for business, they have stifled renewable energy investment. This needs to change if Queensland is able to participate sustainably in new data centre development."
Smart Energy Council chief advocacy officer David McElrea said: "Data centres are arriving in Australia at a critical time in our energy transition, with unreliable coal and expensive gas being squeezed out of the system. We don't want data centres driving up the cost of living and causing increased climate pollution by keeping coal and gas operating a day longer than they need to."
Public interest principles for data centres
Pic: Robin Jacob
