{"id":"camfeed-94","numeric_id":94,"short_title":"New data centres set to escape rules","seo_title":"The bigger, hungrier AI data centres set to escape looming water and power restrictions - ABC News","social_title":"Why these big new AI data centres are set to escape new regulations","headline":"The bigger, hungrier AI data centres set to escape looming water and power restrictions","teaser_title":"Why these big new AI data centres are set to escape new regulations","titles_source_url":"https://www.abc.net.au/news/2026-09-11/the-ai-data-centres-set-to-escape-planned-restrictions/107097556","titles_fetched_at":"2026-09-10T23:06:40+00:00","title":"Bigger and hungrier: What we know about 25 proposed new data centres","canonical_url":"https://www.abc.net.au/news/2026-09-11/the-ai-data-centres-set-to-escape-planned-restrictions/107097556","published_at":"2026-09-10T22:25:38+00:00","source":"ABC News","source_type":"abc","type":"news article","content_role":"primary","author":"Cameron Wilson","summary":"Dozens of approved but yet-to-be-built AI data centre projects will escape the federal government's proposed restrictions around energy and water use because the new rules are not expected to be retrospective.","text":"Dozens of approved but yet-to-be-built AI data centre projects will escape the federal government's proposed restrictions around energy and water use because the new rules are not expected to be retrospective.","has_full_text":true,"mcp_visible":true,"mcp_full_text_allowed":true,"full_text_word_count":1179,"full_text_status":"ok","full_text_source_url":"https://www.abc.net.au/news/2026-09-11/the-ai-data-centres-set-to-escape-planned-restrictions/107097556","full_text_fetched_at":"2026-09-10T23:06:40+00:00","has_transcript":false,"transcript_status":"","transcript_kind":"","transcript_char_count":0,"topics":["AI","technology policy"],"quoted_author":"","quoted_url":"","quoted_text":"","citation":"Cameron Wilson, \"Bigger and hungrier: What we know about 25 proposed new data centres\", ABC News, 2026-09-11, https://www.abc.net.au/news/2026-09-11/the-ai-data-centres-set-to-escape-planned-restrictions/107097556","citation_markdown":"Cameron Wilson, [Bigger and hungrier: What we know about 25 proposed new data centres](https://www.abc.net.au/news/2026-09-11/the-ai-data-centres-set-to-escape-planned-restrictions/107097556) — ABC News — 2026-09-11","attribution":"Originally published at ABC News. Link to the canonical ABC URL: https://www.abc.net.au/news/2026-09-11/the-ai-data-centres-set-to-escape-planned-restrictions/107097556","full_text":"Dozens of approved but yet-to-be-built AI data centre projects will escape the federal government's proposed restrictions around energy and water use because the new rules are not expected to be retrospective.\n\nABC analysis of planning records and company documents has revealed this new generation of data centres will be significantly bigger and power hungrier than existing ones.\n\nEarlier this year, Prime Minister Anthony Albanese announced the federal government would create Australian standards to quell community concerns about the environment, while attracting the investment of major tech companies.\n\nWith the government aiming to pass a law to establish these rules by early 2027, the uncertainty has not slowed the breakneck speed of development.\n\nBusiness has welcomed the tens of billions of dollars being invested in building the physical infrastructure powering the generative AI boom, although not all of the approved data centres will likely be built.\n\nKnow more about this story? Email Cam Wilson on wilson.cameron@abc.net.au or his secure email cmwlsn@protonmail.com\n\nBigger, hungrier\n\nABC analysis of upcoming projects includes developments from Amazon Web Services, Microsoft, AirTrunk, CDC and NEXTDC, as well as property groups Goodman and Stockland, each of which was contacted for confirmation.\n\nThe list has been verified by analysts from commercial renewable energy project mapper RenewMap and real estate construction analytics firm CBRE.\n\nAdvocacy group Data Centre Australia published a report saying Australia had 162 data centres with a combined IT capacity of 1.5 gigawatts as of March of this year.\n\nThe combined capacity of the approved, but unbuilt, 25 data centres is at least 2.9 gigawatts, based on each company's statements of computing power and the state planning-approved energy capacity.\n\nOne project approved last week is property developer Goodman's five-storey data centre Project Apollo in Sydney's north.\n\nIt will take two years to build and be one of Australia's biggest data centres by computing capacity if it existed today, according to the facility's proposal.\n\nWhile not subject to the federal government's rules, its approval came with conditions from the NSW government relating to water and energy use.\n\nRenewMap co-founder and director Alex Thompson said the development pipeline had accelerated in recent months, with proposed centres generally much larger than those already operating.\n\nHe said NSW and Victoria were the main growth areas, particularly western Sydney and Melbourne's outskirts, while developers were also pursuing regional locations alongside wind, solar and battery projects.\n\nMr Thompson said even though they have been approved, \"not all of these data centres will get built\".\n\nEnvironmental concerns\n\nFor software engineer and western Sydney resident Jack Tollefsen, the expansion is happening close to home.\n\nHe lives in Horsley Park and works down the road from NEXTDC's S4 development, which is under construction and expected to provide 365MW of capacity.\n\nMr Tollefsen has started a petition opposing the data centre and others being built in suburban areas.\n\nAn environmentalist who opposes AI, Mr Tollefsen said he had raised his concerns with local and state representatives.\n\n\"My main concerns with this are largely the environmental impact, the impact it has on the ecosystem, the native wildlife in the area,\" he said.\n\nMr Tollefsen said he was disappointed the federal government had not already introduced minimum standards for data centres.\n\nHe said he hoped NEXTDC would at least reduce its water usage by designing it with a closed-loop system, a more water-efficient approach that requires more energy.\n\nThe proposed national standards are intended to address energy, water and land-use impacts of large data centres, but state and territory governments will retain their planning responsibilities.\n\nThe exact details of the proposed legislated standards have not yet been released.\n\nSo far, the federal government has said it will require data centres to underwrite new renewable energy to cover their consumption, cover the connection costs, be as water-efficient as possible, and be built in appropriate locations.\n\nSome of the approved data centres may meet these standards, even if they are not legally required to comply.\n\nAustralia wants investment on our 'terms'\n\nIn July, Mr Albanese delivered a landmark speech detailing how Australia would respond to the opportunity and challenges presented by AI.\n\nThe prime minister said Australia had both the desire and capacity to attract investment from major AI companies, including data centres, as long as they met certain requirements.\n\nHe said the government would pass a law in early 2027 setting rules to force data centres to minimise water use and maximise energy efficiency.\n\n\"We can set the terms, we can determine AI's social licence,\" he said, claiming the standards would create certainty for investors, too.\n\nBut the prime minister later told ABC Radio Sydney the rules would not apply to projects already approved or under construction.\n\n\"You can't retrofit. But as well, many of the centres which are under construction tend to be smaller ones,\" he said.\n\nA Department of Industry, Science and Resources spokesperson said Australia had far fewer large data centres built and in construction than the United States, citing research from S&P Global Ratings.\n\n\"Current investment trends suggest the number of large data centres will increase. The Australian government wants this investment to be sustainable and aligned with our national interests,\" they said.\n\nCall to stop building until rules in place\n\nGreens senator Sarah Hanson-Young has been leading calls for a ban on data centre construction until the government establishes minimum standards.\n\nShe said communities were already facing pressure from developments being proposed and built, and argued standards introduced after projects were approved would not provide the protections the government was promising.\n\n\"In the absence of a moratorium on building and approving new data centres, then these rules must be retrospective because otherwise they're worthless,\" she said.\n\nSenator Hanson-Young said the government risked losing community support for AI if it did not take concerns about energy, water and local benefits seriously.\n\nData Centres Australia chief Belinda Dennett said her industry was already taking steps to meet the government's expectations around power and water use.\n\n\"Members will continue to meet those requirements until the new rules are in force — but they cannot comply with something that isn't yet established or even articulated.\"\n\nInvestment continues\n\nKate Muller, a partner in Ashurst Perkins Coie's projects and energy transition practice, said the delay and uncertainty around national standards was not dampening investor interest.\n\nMs Muller said Australia was attractive to major technology companies because of its security, and a government and policy environment similar to US-headquartered businesses.\n\nShe said developers were used to dealing with some regulatory uncertainty.\n\n\"The degree of debate, guideline and regulation is unlikely to deter that investment and we certainly haven't seen that in our practice and with the people that we're speaking to around industry,\" she said.\n\nMs Muller said clear expectations could help ensure projects delivered benefits for Australians, while public debate could help address their potential detrimental effects.\n\n\"Indeed, we expect to see a genuine drive toward more data centre development in Australia,\" she said.\n\nTwo federal parliamentary inquiries are examining data centres and AI respectively, and will report back later this year.","full_text_attribution":"Full text extracted from the ABC News article at https://www.abc.net.au/news/2026-09-11/the-ai-data-centres-set-to-escape-planned-restrictions/107097556. Attribute to ABC News and link to the canonical URL."}