Construcciones Yamaro: Australia sets expectations for data centres and AI infrastructure

Australia sets expectations for data centres and AI infrastructure
Australia attracts strong global investment in data centres. (Image: Sashkin/stock.adobe.com)

Following the release of its National AI Plan in December 2025, the Australian Government has set new expectations for data centres and AI infrastructure developers.

The expectations are designed to make investment in Australia easier, setting nationally consistent signals to support engagement with communities, coordination with states and territories, and faster progress for projects aligned with national priorities.

“Australia has a significant number of national challenges to solve, and AI, data centre investment and advanced industrial and technological capability can help us get there,” said Minister for Industry and Innovation and Minister for Science Tim Ayres.

“Securing this infrastructure onshore strengthens our security, supports our start-ups and researchers, and ensures Australian data benefits Australians, not offshore jurisdictions.”

The expectations focus on five key areas: prioritising national interest, supporting the energy transition, using water responsibly, investing in skills and jobs, and strengthening research, innovation and local capability.

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The Australian Government will work with the states and territories and market participants to implement the expectations, particularly through the Energy and Climate Change Ministerial Council.

The Government expects data centres and AI infrastructure operators to underwrite new renewable power supply, pay their full share of new grid connectivity so costs are not passed to consumers or businesses, and support the energy transition through demand flexibility mechanisms. It also expects hyperscalers to make compute available to Australian start-ups seeking to create Australian AI and partner with the local innovation ecosystem.

Australia already attracts strong global investment in data centres, with the industry contributing to the economy and industrial capability. The expectations aim to secure positive national outcomes.

“It’s no surprise that Australia is an attractive investment destination for data centre technology. We’re really proud of our abundant renewable energy resources – our sunshine and wind have already helped us reach 51 per cent renewables on our grid,” said Minister for Climate Change and Energy Chris Bowen.

“Data centres have great potential to support our grid and expand new renewable investment, but it’s important we work together across jurisdictions and with industry to get the investment settings right so that we can continue to keep our system secure and energy prices low for all consumers.”

Through regulatory processes, the Government will prioritise proposals aligned with these expectations. The framework will work alongside existing laws and guide decision-making across states and territories.

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