What does a good data centre future look like? And how do we get there?

Canberra, Australia is experiencing a rapid expansion of data centre facilities, driven by the increasing demand for artificial intelligence tools. These data centres consume substantial amounts of electricity, water, and land resources. If properly planned and overseen, they can enhance the electricity grid, attract investments, and stimulate economic growth. However, without adequate planning, they may negatively impact the economy, environment, and communities.

To achieve a positive data centre future, several crucial factors must be addressed. First, energy sources should primarily consist of renewable power, supported by reliable backup arrangements. While the federal government aims for new data centres to match their energy demand with new renewable generation, Queensland and the Northern Territory are more lenient in allowing fossil fuels for primary and backup power generation.

This approach contradicts Australia's climate objectives and may increase costs and harm local air quality and community health.

Second, water usage must be managed efficiently. Data centres consume significant amounts of water for cooling server systems. Technologies like closed-loop recycling systems and water-efficient designs can drastically reduce water consumption. The National Australian Built Environment Rating System is developing a water standard for data centres, which should require top ratings in both energy and water efficiency.

Third, the location of data centres is critical. Concentrating these facilities in areas like Melbourne and Sydney, where skilled workers and supply chains are available, can strain local power grids and increase consumer costs. Distributing data centres to regions with spare capacity can alleviate grid pressure, utilize underutilized renewable power, and serve as dependable buyers for new renewable energy projects.

Moreover, hosting communities should receive genuine consultation and meaningful benefits, such as community batteries, e-waste recycling programs, upgrades to local water infrastructure, and workforce training pipelines.