Data centres must face strict rules on energy and water, says ACF

The federal government has set national expectations for data centres with the release of ‘Expectations of data centres and AI infrastructure developers’ — a commitment made under the National AI Plan.

The government said the Expectations are designed to make it easier to invest in Australia. By setting clear, nationally consistent signals, they support smoother engagement with communities, stronger coordination with states and territories, and faster progress for projects that are aligned with Australia’s priorities. 

In response to the release, the Australian Conservation Foundation (ACF) said data centres must face strict rules on energy and water.

“Data centres guzzle power and water and they could derail Australia’s clean energy transition unless they are properly regulated,” said ACF CEO Adam Bandt. “The government should be commended for making it clear that it’s not open season for data centres that are eyeing off Australians’ precious water and energy supplies.

“We welcome the government’s direction and the inclusion of expectations relating to additional renewable energy supply and sustainable and efficient water use.

“However, giving these big tech corporations guidelines is not enough.

“Expectations are a vague policy intervention — we expect the government to build on these policy principles and set genuine, specific conditions to make sure data centres comply with these obligations.”

The Expectations released as part of the federal government’s commitment are:

1. Prioritise Australia’s national interest.
2. Support Australia’s energy transition.
3. Use water sustainably and responsibly.
4. Invest in Australian skills and jobs.
5. Strengthen research, innovation and local capability.

ACF said there was not enough information released in the Expectations on how data centres will impact surrounding nature and local communities.

“If you want to build a data centre in Australia, you should be compelled to build the renewables and water recycling infrastructure to service it,” Bandt said. “We are disappointed the government has not listed any expectations relating to the siting of these data centres, to minimise impacts on nature, or relating to community benefits sharing and proper consultation with local communities and First Nations.

“We urge the Albanese government, in partnership with states and territories, to impose strict, measurable obligations on the tech titans to make sure they do their share, consult properly and don’t drain our resources or derail the clean energy transition.”

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