The Australian federal government will pass binding legislation setting national standards for large-scale data centers’ electricity and water consumption, with rules expected to take effect in early 2027. These standards will require data centers to become net generators of renewable energy and cover the full costs of grid connection. The legislation also aims to improve water efficiency by encouraging the use of non-potable water sources. Australia’s data center capacity could reach several gigawatts by 2030, accounting for roughly 10% of the National Electricity Market’s total demand by 2050. Queensland and the Northern Territory have expressed concerns about the renewable energy mandates.
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