Canberra, March 23 The Australian government announced on Monday that it will fast-track approval for data centres that use water sustainably and support the national clean energy transition.
Tim Ayres, minister for industry and innovation and minister for science, said on Monday that the new framework of expectations for data centres and artificial intelligence (AI) infrastructure developers will make it easier to invest in Australia by setting clear and consistent signals.
He said in a joint statement with Chris Bowen, minister for climate change and energy, and Andrew Charlton, assistant minister for science, technology and the digital economy, that the expectations make it clear that data center developments "must put the needs of the Australian people first."
Chris Bowen said, “It’s no surprise that Australia is an attractive investment destination for data centre technology. We’re really proud of our abundant renewable energy resources, our sunshine and wind has already helped us reach 51 per cent renewables on our grid.
Under the new framework, data centre projects that prioritise the national interest, support the energy transition, use water sustainably and responsibly, invest in local skills and jobs, and strengthen Australia's research capability will be fast-tracked through the planning and approval process.
"Australia is open for business -- but the kind of business that puts Australia's national interest first," Ayres said.
The Australian Energy Market Operator in 2025 estimated that data centers will consume around 6 percent of grid-supplied electricity by 2030 and 12 per cent by 2050, up from 2 per cent in 2024-25, Xinhua news agency reported.
The new framework says that new data centers will be expected to secure new and additional clean energy generation or storage to offset demand, adopt industry-leading efficiency measures and cover their share of transmission and distribution infrastructure costs.
Bowen said that the measures would keep energy prices low for all consumers.
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