The ACT Government will strengthen expectations for the construction of future data centres in the Territory through a comprehensive ACT Data Centre Framework, building on national standards agreed by National Cabinet.
The Framework will provide greater certainty to both industry and the community by confirming that future data centre development will be limited to locations already permitted under the ACT planning system. Data centres cannot be built in Canberra's residential neighbourhoods and are restricted to designated commercial, industrial, transport and services, and certain non-urban zones.
The Framework will guide future digital infrastructure investment, ensuring the industry supports local jobs, innovation and economic growth while protecting residential areas, housing supply, water security, energy reliability and Canberra's high quality of life.
The Framework will provide clear rules about where data centres can be located, the standards they must meet, and how proposals will be assessed.
Chief Minister Andrew Barr said growing demand for artificial intelligence, cloud computing, cyber security services and digital infrastructure presents major opportunities for Canberra, but growth must occur within clear environmental and infrastructure limits.
"Data centres are the factories of the digital economy. Every AI application, online government service, cyber security operation and cloud-based business relies on secure digital infrastructure," the Chief Minister said.
"Canberra has unique strengths as Australia's centre of government and a national hub for cyber security, research, defence and advanced technology industries.
"Data centres can support economic growth, high-value jobs and sovereign digital capability, but they must be developed in a way that puts Canberra's long-term interests first."
The ACT is already significantly advanced on many of the proposed national standards.
The Framework will identify the most appropriate corridors and locations for future data centres, supported by industrial zoning, strategic transport links and utility infrastructure.
The Framework also forms part of the Government's broader approach to artificial intelligence, with a Statement of Ambition on AI due later this year setting out how we can harness the technology to drive innovation, strengthen business and industry, and empower workers.
The ACT supports national requirements for data centres to offset additional electricity demand through investment in new renewable generation. While data centres are large energy users, they can also help unlock investment in renewable energy infrastructure that increases capacity and supply.
"We want data centres that help build new renewable energy, not simply consume existing capacity. Every major proposal should demonstrate how it strengthens Canberra's energy system and contributes to the clean energy transition."
The Government will also explore opportunities to co-locate future facilities with renewable energy and battery storage infrastructure, including decentralised models identified in the ACT briefing.
Water security will be a core consideration of the Framework. Modern facilities operating in the ACT are using technologies that significantly reduce water and energy consumption. Any future centre in the ACT will be expected to demonstrate best-practice water efficiency and minimise impacts on both water supply and wastewater infrastructure.
Following a period of consultation with industry and stakeholders, the Government aims to release a draft Data Centre Framework in early 2027, outlining proposed locations, assessment criteria, sustainability requirements and infrastructure expectations.
"By combining clear planning rules, strong environmental safeguards, expanded renewable energy investment and world-leading water efficiency, Canberra can become the national benchmark for how digital infrastructure should be developed."
