The AI boom has led to data centres popping up all over Australia, and they have an insatiable thirst for water and electricity.
Now, a concerned coalition of industry, union, environmental and community groups are asking the government to create new standards — with a focus on resource usage and transparency.
The proposal is now on the desks of two government ministers.
🔌What gives? Industry Minister Tim Ayres and Assistant Minister for Science, Technology and the Digital Economy, Andrew Charlton, have received the proposal, which outlines eight guardrails for new data centres:
Be powered by 100% additional renewable energy
Strengthen grid stability
Be appropriately sited to minimise impacts on nature and land use
Cut emissions and waste, and use energy and materials efficiently
Use water resources responsibly
Operate with transparency
Commit to earning and maintaining an ongoing social licence
Support the training and upskilling of the workforce
What they said: Carbon Zero Initiative’s Alexander Hoysted told the National Account the coalition of industry groups wants clear incentives:
“We want to make sure that this industry is incentivised to move where renewable energy is being generated,” said Hoysted. “And if they’re not able to move where the renewable energy is, then we want to make sure that this industry is powering new renewable energy.”
Rob Law, Senior Manager, Energy Transitions at WWF Australia, told the National Account some data centres already use better practices, but that it was up to governments to make it the norm, not the exception.
“If governments are going to roll out the red carpet for data centres, it needs to be lined with hard guardrails on water and energy before the rush locks in problems that are hard to undo,” said Law.
“There's a risk data centres are offered an all-you-can-eat-and-drink buffet of power and water. Without proper guardrails, communities pick up the tab.”
The response: Writing about the plan, Data Centres Australia CEO Belinda Dennett posted on LinkedIn:
“Principles developed independently of the industry are inherently limited. Without grounding in operational reality, commercial feasibility and the existing regulatory landscape, they risk being impractical.
“This is a sector that has committed to net zero by 2030 targets and does not need to be compelled to act.”
Hoysted said he wouldn’t directly address the LinkedIn post, but did say that just because “there hasn't been any pushback or any chances to have a conversation around some of the concerns that we've raised in our principles doesn't mean that there shouldn't be.”
Watch the full interview with Alexander Hoysted below: