Technology
Australia proposed datacentre rules could trigger approval rush before enforcement
New federal guidelines aim to enforce renewable energy use and location limits for datacentres, but non-retrospective rules may prompt developers to expedite pending projects.
The short version
- Prime Minister Anthony Albanese is seeking national cabinet agreement on new federal rules for datacentre developments.
- The regulations require datacentres to cover their electricity and connection costs using renewable energy, minimize water usage, and avoid residential and agricultural areas.
- Because the laws will not apply retroactively to projects approved before enactment next year, experts and advocates warn of a potential rush to secure approvals under existing state laws.
Key facts
- Prime Minister Anthony Albanese plans to present proposed federal regulations for datacentres to the national cabinet.[The Guardian]
- The proposed rules require new datacentres to avoid increasing power prices, source renewable energy, cover connection expenses, minimize water usage, and maintain distance from homes, schools, and agricultural sites.[The Guardian]
- The new regulations will not apply retroactively to projects receiving approval before legislation passes next year.[The Guardian]
- The Australian Energy Market Operator reported 225 datacentres currently in development, predicting power demand from the sector will rise from 5 to 34 terawatt hours by 2036.[The Guardian]
- Community advocacy groups and the Australian Greens have called for a moratorium on new datacentre approvals until the federal rules take effect.[The Guardian]
What remains uncertain
- It remains uncertain how many of the 225 proposed datacentres will complete construction, as over 40% of projects listed in the 2025 AEMO report were later cancelled or delayed.[The Guardian]
- It is unclear whether state and territory leaders will agree to sign off on the proposed federal standards during national cabinet discussions.[The Guardian]