Industry calls for action on data centres

With data centres set to increase in Australia thanks to the AI boom, an alliance of concerned groups is urging the government to ensure that these enterprises operate responsibly.

The alliance — comprising the Electrical Trades Union, Clean Energy Council, Australian Conservation Foundation, WWF-Australia, Smart Energy Council, RE-Alliance, Climate Energy Finance, Nature Conservation Council of NSW, Environment Victoria, Queensland Conservation Council, Sunrise Project Australia and Carbon Zero Initiative — has presented a proposal to federal government with a list of recommended actions.

The plan was delivered to Industry Minister Tim Ayres and Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton by the Carbon Zero Initiative. It recommends that data centre operators use water responsibly and invest in new renewable energy to power their operations instead of pushing up the price of wholesale power.

It also urges data centre operators to train local apprentices rather than steering skills away from national priorities like housing.

“Australia needs tens of thousands more electrical workers to wire our nation into the 21st century — including by building data centres,” said ETU National Secretary Michael Wright.

“Data centres must open doors for young Australians to train for skilled, rewarding electrical careers, not just siphon existing skills away from important national priorities like housing and energy transition.

“Data centres that invest in Australian energy and skills are welcome here — ones that drive up power prices, take drinking water and lock young people out of jobs are not,” he said.

Clean Energy Council CEO Jackie Trad said that electricity demand from Australia’s data centre growth is expected to rise from 1.35 GW today to between 5 and 8 GW by 2035. “Without new supplies of electricity to meet this demand, this will place increased pressure on all existing generation resources,” Trad warned.

“With the expected growth in demand it’s important Australia has a sustainable solution to meet the supply needs of new data centres.

“Data centres powered exclusively by new renewable energy can grow the existing supply pool without increasing pressure on existing residential and commercial electricity users,” she said.

Rob Law, WWF-Australia’s Senior Manager, Energy Transition, said data centres could play a role in Australia’s future, but only if they’re built in the right ways and right places.

“That’s why we need strong guardrails to ensure new data centres are highly water-efficient and powered by 100% new-build renewables,” Law said.

“They must be sited smartly — away from high-value biodiversity areas and with water availability, First Nations interests and regional impacts front of mind.”

The plan’s eight data centre principles are as follows:

1. Be powered by 100% additional renewable energy
2. Strengthen grid stability
3. Be appropriately sited to minimise impacts on nature and land use
4. Minimise embodied emissions and maximise efficiency and circularity
5. Use water resources responsibly
6. Operate with transparency
7. Commit to earning and delivering ongoing social licence
8. Support the training and upskilling of the workforce

Image credit: iStock.com/gorodenkoff