Councils want a greater say in data centre planning

Local councils say they want a greater say in the building and managing of data centre developments. The Australian Local Government Association says that while the federal government’s announcement of a new national framework for artificial intelligence and large data centres is an important step, councils must be formally involved in decisions about where data centres are built, how their communities can benefit and how their impacts are managed.

The government has announced new Australian Standards for AI, including expectations that large data centres underwrite their own new power supply, pay their full share of connection costs, reduce power when needed to support the grid, and be as water efficient as possible. It has also committed to working with states and territories to ensure large data centres are built in appropriate locations, with input from local communities.

ALGA President Mayor Matt Burnett said the announcement was welcomed, but local governments needed to be central to the next stage of development.

“Councils see the opportunities that technology offers, but data centres are not invisible infrastructure — they are built in real communities, using local land, local water and local energy networks,” he said. “These decisions can’t be made from a distance. Councils know what works on the ground for their communities. We understand local land, water, power and liveability pressures, and we need to be involved before decisions are locked in.

“Communities care about what is happening in their street, what pressure it puts on local services, and whether their water and energy supplies are being protected.”

At ALGA’s 2026 National General Assembly, more than 1100 local government delegates from across Australia discussed the growing importance of data centres and the need for stronger regulation to protect communities, energy reliability and water resources.

Mayor Burnett said councils supported strong national leadership, but warned against a fragmented approach to data centre development.

“If we get this right, data centres can support Australia’s digital future while strengthening communities. But if decisions are made without councils, we risk a patchwork of developments” he said.

Mayor Burnett said the federal government’s recognition of community input was welcome, but this must translate into genuine involvement for councils.

“The commitment to local community input is encouraging, but councils are the level of government closest to communities and the level of government responsible for managing many of the local impacts,” he said. “Councils will be central to making sure these projects work on the ground.”

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