Australian gov't publishes "expectations" for data centers and AI infrastructure projects

Including creating jobs, and protecting power and water resources The Australian Government's Department of Industry, Science, and Resources has put out a set of "expectations" for those seeking to develop data centers in the country. The expectations aim to ensure that "data center development only happens when it aligns with Australia's interests," and are part of Australia's National AI Plan. - Thinkstock In total, the government has outlined five expectations, though seemingly not requirements. The expectations are as follows: that projects prioritize Australia's national interest, support its energy transition, use water sustainably and responsibly, invest in Australian skills and jobs, and strengthen research, innovation, and local capability. Supporting the energy transition could include developers securing new clean energy generation and storage to help offset their demand, covering the costs of transmission infrastructure needed for the project, and making an effort to ensure operations are as efficient as possible to reduce strain. For the final expectation of strengthening research and innovation, this includes giving access to compute for Australian startups, small businesses, and not-for-profits with "favorable terms." In return, the government will "prioritize projects in the regulatory approval processes," while those not closely aligned will not receive the same preferential treatment. The government notes that these expectations apply only to large-scale data centers. In addition, the expectations "work alongside existing national, state and territory laws. They do not alter any obligations to comply with Australian law or to engage in good faith with regulators." Plans for such expectations have been ongoing since December 2025. Australia has not seen the same level of data center development as that of the US, though the country has a few hotspots in Sydney, Melbourne, Perth, Adelaide, and Brisbane. Despite this, its market is growing, with data center supply set to expand by 40 times in 20 years, with two-thirds of this growth occurring from 2020 onwards, according to research from advisory firm M3 Property. While the country may be keen to court developments (that meet its social responsibility guidelines), earlier this month, Google warned that the country's taxation policy was putting it off making a major investment in Australia. The hyperscalers all have a presence down under, but have typically opted to lease space at colocation or wholesale data centers in Australia due to a tax rule that sees those with a "permanent establishment" as being subject to a 30 percent corporate tax rate. Google is seeking to establish a $20bn AI and data center hub somewhere in the Asia Pacific area, and, while Australia is on the list, the company has warned that the tax rule could disincentivize investment in the nation. More in Construction & Site Selection