Construcciones Yamaro: TBH flags land and power constraints for Canberra data centres

Electricity supply is one of the challenges standing between Canberra and its data centre ambitions, according to a new report from project delivery consultancy TBH.
The report, The Infrastructure Behind Canberra’s Digital Future, finds that the ACT has limited local generation capacity and depends on interconnected eastern grid infrastructure, while land, water and approval pressures compound the problem. It argues that decisions made now about land, power and enabling infrastructure will be important to Canberra’s ability to strengthen its role as Australia’s sovereign digital infrastructure capital and build an AI-ready infrastructure base.
According to the report, Canberra is home to Australian Government agencies, Defence and intelligence functions. TBH says that, unlike Sydney and Melbourne, Canberra’s data centre market is shaped by sovereign government requirements and national security considerations.
The report states that the Australian Government’s Protective Security Policy Framework, Information Security Manual and Security of Critical Infrastructure reforms are reinforcing demand for secure, onshore digital infrastructure, placing further pressure on Canberra’s land and power supply.
TBH identifies electricity supply as one of the defining challenges facing Canberra’s data centre sector. The report notes that high-density, AI-enabled facilities can draw power equivalent to major industrial operations, while the ACT has limited local generation and faces long lead times for network upgrades.
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“The ACT faces a distinct set of energy constraints – limited local generation, dependence on interconnected infrastructure and increasing grid congestion risk,” said Travis Harvey, director at TBH. “A precinct-scale approach could turn that challenge on its head. Rather than being treated purely as additional load, data centres could help anchor investment in substations, renewable energy hubs, battery storage and grid firming infrastructure that benefits the whole network.”
The report states that existing industrial precincts in the ACT, including Hume, Mitchell, Beard and Fyshwick, are under development pressure from logistics, urban growth and industrial expansion. According to TBH, this makes strategic land planning central to Canberra’s data centre opportunity.
“Large-scale data centres need industrial land with high-voltage electricity, fibre connectivity, water infrastructure, secure access and separation from surrounding uses – and that combination is becoming harder to find in Canberra,” said Rob Hammond, director and global data centre lead at TBH. “Strategic land planning is now central to whether Canberra can convert its data centre opportunity into deliverable projects.”
TBH also identifies water as a constraint. The report says Canberra’s dry climate and history of drought make long-term water resilience a strategic consideration for large-scale data centre development, with recycled water, closed-loop systems and liquid cooling playing an increasing role in site selection.
According to the report, approvals add another layer of risk, with major data centre projects facing complex pathways spanning environmental assessments, utility coordination, water licensing and security requirements. TBH says facilities serving government, Defence or critical infrastructure functions may also require coordination across the ACT and Australian governments, utilities, regulators, emergency services and security stakeholders.
The TBH report proposes an integrated utility precinct model, in which power, water, cooling, connectivity and enabling infrastructure are planned together at precinct scale, as a way to support Canberra’s future data centre capacity.
The report argues that this approach could provide greater certainty and potentially lower capital exposure for data centre operators. It could also give the Australian Government greater assurance that sovereign cloud, secure data and Defence capabilities are supported by resilient physical infrastructure, while providing the ACT Government with a framework to direct investment towards sites where land, power, water and community outcomes can be planned together.
The full report, The Infrastructure Behind Canberra’s Digital Future, is available on the TBH website.
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