Canberra, March 23 – The Australian government announced on Monday that it will expedite approval for data centers that use water sustainably and support the nation's transition to clean energy.
Tim Ayres, Minister for Industry and Innovation and Minister for Science, said on Monday that a new framework of expectations for data centers and artificial intelligence (AI) infrastructure developers will make it easier to invest in Australia by providing clear and consistent signals.
In a joint statement with Chris Bowen, Minister for Climate Change and Energy, and Andrew Charlton, Assistant Minister for Science, Technology and the Digital Economy, he said that the expectations make it clear that data center developments "must prioritize the needs of the Australian people."
Chris Bowen said, "It's no surprise that Australia is an attractive investment destination for data center technology. We are really proud of our abundant renewable energy resources, and our sunshine and wind have already helped us reach 51 per cent renewables on our grid."
Under the new framework, data center projects that prioritize the national interest, support the energy transition, use water sustainably and responsibly, invest in local skills and jobs, and strengthen Australia's research capability will be fast-tracked through the planning and approval process.
"Australia is open for business – but the kind of business that puts Australia's national interest first," Ayres said.
The Australian Energy Market Operator estimated in 2025 that data centers will consume around 6 percent of grid-supplied electricity by 2030 and 12 percent by 2050, up from 2 percent in 2024-25, Xinhua news agency reported.
The new framework says that new data centers will be expected to secure new and additional clean energy generation or storage to offset demand, adopt industry-leading efficiency measures and cover their share of transmission and distribution infrastructure costs.
Bowen said that the measures would keep energy prices low for all consumers.
