New Delhi, 23 March 2026: The Australian government announced on Monday that it will speed up approvals for data centers that use water sustainably and support the national clean energy transition. Minister for Industry, Innovation and Science, Tim Ayres, said on Monday that the new framework of expectations for data center and artificial intelligence (AI) infrastructure developers would make it easier to invest in Australia by providing clear and consistent signals.
In a joint statement with the Minister for Climate Change and Energy, Chris Bowen, and the Assistant Minister for Science, Technology and the Digital Economy, Andrew Charlton, he said data center development must put the needs of Australians first. “It’s no surprise that Australia has become an attractive investment destination for data center technology. We are very proud of our abundant renewable energy resources.
Our sunshine and wind have already helped us reach 51 per cent renewable energy on our grid,” Chris Bowen said. Under the new framework, data center projects that support the energy transition, use water sustainably and responsibly and invest in local skills and jobs will be accelerated through the planning and approvals process. Under the new framework, data center projects that strengthen Australia’s research capacity will be accelerated.
“Australia is open for business, but business that puts Australia’s national interests first,” Ayres said. The Australian Energy Market Operator estimated in 2025 that data centers would consume approximately 6 percent of electricity supplied by the grid by 2030 and 12 percent by 2050, up from 2 percent in 2024–25.
The new framework states that new data centers will be expected to meet demand, adopt industry-best efficiency measures and acquire new and additional clean energy generation or storage to cover their share of transmission and distribution infrastructure costs, the news agency reported. Bowen said these measures will keep energy prices low for all customers.
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