Water security and clear planning rules will form the core of a new strategy designed to unlock the economic potential of data centres in Canberra, the ACT government says.
The ACT will develop a data centre framework designed to protect residential areas, housing and water while also backing the centres' ability to create jobs and economic growth, and also release a new artificial intelligence (AI) statement on how the technology can empower workers.
Clear rules would be set for where data centres can be built, the standards they must meet and how proposals would be assessed, the government said.
The ACT will also examine ways to co-locate future centres with renewable energy and battery storage.
Chief Minister Andrew Barr said data centres could support economic growth and high-value jobs but needed to be developed in a way that put the capital's long-term interests first.
"Data centres are the factories of the digital economy. Every AI application, online government service, cyber security operation and cloud-based business relies on secure digital infrastructure," Mr Barr said.
"Canberra has unique strengths as Australia's centre of government and a national hub for cyber security, research, defence and advanced technology industries."
CDC Data Centres, a data centre operator founded in Canberra, welcomed the ACT government's announcement.
"Providing certainty around planning, infrastructure and sustainability expectations will support responsible industry growth and attract long-term investment to the territory," the firm's chief executive, Greg Boorer, said.
in Canberra, CDC Data Centres runs campuses at Hume, Fyshwick and Beard which support around 230 ongoing jobs in the territory, the company said.
"Our Canberra facilities have supported more than $315 million of value added to the ACT economy during construction and continue to support around $65 million per year of value added to the ACT economy through their operations," the company said in a statement.
After a national cabinet meeting on Wednesday, Mr Barr said the ACT's comprehensive framework would build on the agreed national standards and guide digital infrastructure investment consistent with Canberra's high quality of life.
"By combining clear planning rules, strong environmental safeguards, expanded renewable energy investment and world-leading water efficiency, Canberra can become the national benchmark for how digital infrastructure should be developed," he said.
The government said the ACT was already significantly advanced on many of the areas in the proposed national standards.
"The framework also forms part of the government's broader approach to artificial intelligence, with a statement of ambition on AI due later this year setting out how we can harness the technology to drive innovation, strengthen business and industry, and empower workers," the government said.
The Commonwealth government will develop national AI laws by early 2027 and work with state and territory governments to develop consistent and mandatory data centre standards.
The national standards are also expected to cover energy, water and land-use requirements.
"These standards will ensure consistency and clarity for investors, while protecting Australia's economy, strengthen our sovereignty and secure benefits in line with our national interests," the communique issued after the national cabinet meeting said.
"Commonwealth legislation will be designed to complement, not duplicate, state and territory planning and approval processes."
Last month, Mr Barr said there was no need to pause new data centre projects in the territory because standards were already probably higher than proposed national rules.
"Canberra's climate also suits data centres better than some of the warmer or more tropical environments because we have lower humidity and periods like we are in now where it's very cold. So some of the heat issues that some data centres in warmer climates face aren't as prevalent in the ACT," he said.
