Government announces Australian data centre expectations

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

The Expectations make clear that data centre developments must put the needs of the Australian people first, ensuring our communities benefit directly through jobs, investment in skills and innovation — while strongly supporting Australia’s clean energy transition and safeguarding our long-term water security.

The five expectations are:

• Prioritise Australia’s national interest
• Support Australia’s energy transition
• Use water sustainably and responsibly
• Invest in Australian skills and jobs
• Strengthen research, innovation and local capability
   

By asserting its national interests clearly, the Australian Government is outlining how data centres meet their social license.

The government says it will work with the states and territories and market participants to implement the expectations, particularly through the Energy and Climate Change Ministerial Council.

The government expects data centres and AI infrastructure operators to underwrite new renewable power supply, pay their full share of new grid connectivity so costs are not passed to consumers or businesses, and support Australia’s energy transition through demand flexibility mechanisms.

The government also expects hyperscalers to make compute available to Australian start-ups seeking to create Australian AI, and partner with our innovation ecosystem.

“Australia has a significant number of national challenges to solve — and AI, data centre investment and advanced industrial and technological capability can help us get there,” said Minister for Industry and Innovation and Minister for Science Tim Ayres. “Securing this infrastructure onshore strengthens our security, supports our startups and researchers and ensures Australian data benefits Australians — not offshore jurisdictions.”

“It’s no surprise that Australia is an attractive investment destination for data centre technology,” said Minister for Climate Change and Energy Chris Bowen. “We’re really proud of our abundant renewable energy resources, our sunshine and wind have already helped us reach 51% renewables on our grid.

“Data centres have great potential to support our grid and expand new renewable investment, but it’s important we work together across jurisdictions and with industry to get the investment settings right so that we can continue to keep our system secure and energy prices low for all consumers.”

Australia already attracts strong global investment in data centres, reflecting our competitive edge in renewable energy, robust privacy protections, stable governance and high‑quality connectivity — and the industry makes an important contribution to our economy and industrial capability. The Expectations aim to leverage these strengths to secure positive outcomes for Australia.

Through regulatory processes, the Australian Government will prioritise proposals most closely aligned with these expectations, and the overarching national expectations will work alongside existing laws and help guide local decisions in each state and territory.

To read the detail of the National Data Centre Expectations in full, visit industry.gov.au/NationalDataCentreExpectations.

Image credit: iStock.com/Natali_Mis