The Sunshine State and the Northern Territory have again disagreed with all other Australian jurisdictions on restrictions for data centres, this time over water use. But while there is hope the NT will get on board, the same can’t be said for Queensland.
💧 Thirsty? Some data centres proposed for Sydney and Melbourne plan to use up to 40 million litres of water a day, enough to supply around 80,000 homes.
📋 The new rules: Australia's water ministers have agreed to a national set of minimum rules for how much water data centres can use.
The standards, agreed to on Friday, would require data centre operators to:
Minimise water use.
Install efficient cooling systems.
Prioritise recycled and non-drinking water.
Transparently report their usage.
Pay their share of water infrastructure costs so bills for everyone else don't rise.
🚫 Who said no: Queensland was the only state or territory to reject the standards outright.
The Northern Territory didn't sign on either, but says it's still working with the Commonwealth and expects to reach an agreement.
Federal Environment and Water Minister Murray Watt told the ABC a lot of Queenslanders would be concerned about the state government’s opposition:
🗣️ "I think that's a really big mistake for Queenslanders, and I think it's a big mistake for the country as a whole.”
⚡ Not the first time: Queensland and the Northern Territory were also holdouts at a separate national meeting of energy ministers in late July, refusing to agree that data centres should build the renewable energy they use.
🔮 What's next: A National Cabinet meeting to deal with AI and data centre issues later this month could test the boundaries of state and federal rights over water.
The Federal Government wants the new rules for data centres made law in 2027.
Watch the National Account's Archie Milligan below: