New federal data centre rules next year should remove a ‘wild west’ planning approach to them by state and local governments, PM Anthony Albanese says.
He told ABC Sydney yesterday (Thursday) that planning approvals for these centres rests with the lower tiers of government (state and local).
“… we don’t want to see just a free-for-all,” he says.
“Planning is the responsibility of state and local government. That’s why we want to engage with them constructively so that we get good outcomes.”
His comments came after he unveiled proposals on Wednesday for a new AI office and data centre rules that will go to National Cabinet next month; click here for our report.
Albanese says it is in the centre operator’s interests to locate their buildings “in areas which bring community support rather than community opposition”.
Albanese says the new rules, and an AI Office, next year will focus on new, large projects and not on those now under construction or in the pipeline.
“This will be for new proposals; you can’t retrofit. Many of the centres under construction tend to be smaller ones,” he says.
“What we’re talking about here is potentially, very large data centres need to be in appropriate locations, need to make sure that they add energy to the grid.”
NSW DATA BOOM: As of March, the NSW Government says there are 90 data centres in the state with centres comprising 12% of all non-residential building spending. It says in March, it approved 15 data centre proposals worth $51.9 billion after it had earlier approved 14 energy projects worth $34bn but rejected another $40.7bn worth of proposals. Click here to view their data centre consultation paper.
“One would hope that that was something that was considered prior to approval by state and territory governments,” Albanese says of the projects that have gone ahead.
“What we’re saying is ‘we’ll codify that. We’ll provide that clarity, that certainty’.
“What that will do is to provide certainty is that the number one thing that investors look for; that will provide clear legislated rules of engagement.”
Albanese also says the federal government needs to ensure our national interests are protected whether that is energy or water supplies.
CONTRASTING CALLS ON DATA CENTRES
The Australian Institute of Architects says it welcome the greater national co-ordinated focus.
“Data centres have major impacts on energy networks, water supplies and surrounding communities,” says the Institute’s National President, David Wagner.
“They need strategic planning from day one.
“Data centres are more than buildings; they’re integrated infrastructure systems that need co-ordinated planning across energy, water and land use.”
But Greenpeace Australia wants a moratorium on all centre approvals until the rules are in place.
Greenpeace’s head of climate and energy Joe Rafalowicz says the PM’s announcement on Wednesday “shows that this government is kicking the can down the road”.
“Australians around the country are calling for urgent regulations on AI data centres that are already being built in their backyard,” he says.
“We shouldn’t be talking about ‘faster decision making’ when there are no laws in place to protect our communities from this dangerous industry.”
Rafalowicz says big tech companies are looking at Australia as their second home.
“In the US, AI data centres are wreaking havoc on people’s health, drinking water and air by running their centres on gas. They’ve set their own house on fire; we shouldn’t be opening the door to let them do that here.”
The Australian Chamber of Commerce and Industry says it will be studying the details of the proposals “closely”.
“Businesses will be particularly interested in how the proposed AI standards and governance arrangements are designed, and how the requirements of data centres will work in practice,” chamber CEO Andrew McKellar says.
“The success of any framework will depend on whether it provides certainty for investors, encourages innovation and helps Australia attract the investment needed.”
