An alliance of 11 major industry, environmental and union groups has delivered an eight-point plan to the Australian federal government that includes a requirement for data center operators to invest in 100% new renewable energy to power their operations and fund workforce development.
The proposal has been endorsed by the Clean Energy Council (CEC), Electrical Trades Union (ETU), Australian Conservation Foundation (ACF), WWF-Australia, Smart Energy Council (SEC), RE-Alliance, Climate Energy Finance (CEF), Nature Conservation Council of NSW, Environment Victoria, Queensland Conservation Council (QCC), Sunrise Project Australia and Carbon Zero Initiative.
Estimated by the Australian Energy Market Operator (AEMO) to consume 6% of Australia’s grid-supplied electricity by 2030, the proposal says that data center approvals should include being powered 100% by additional renewable energy, a guarantee to strengthen grid stability, a commitment to earning and delivering ongoing social license and support for the training and upskilling of the workforce.
CEF Director Tim Buckley said data center investment is red hot, and governments are expected to ensure giving approvals to new infrastructure projects comes with clear community benefits.
“After all, the data centers can only be built leveraging the existing publicly funded water and grid infrastructure we have all paid for,” Buckley said.
“Approvals should be conditional upon new long-term firmed renewables power purchase agreements (PPA) as a prerequisite … and come with clear community alignment and best practice, including developing a green energy powered future made in Australia.”
CEC Chief Executive Officer Jackie Trad added that electricity demand from Australia’s data center growth is expected to rise from 1.35 GW today to between 5 to 8 GW by 2035.
“Without new supplies of electricity to meet this demand, this will place increased pressure on all existing generation resources,” Trad said. “Data centers powered exclusively by new renewable energy can grow the existing supply pool without increasing pressure on existing residential and commercial electricity users.”
The group also called for investment in clean energy job skills.
ETU National Secretary Michael Wright said Australia needs tens of thousands more electrical workers to wire the nation into the 21st century, including by building data centers.
“Data centers must open doors for young Australians to train for skilled, rewarding electrical careers, not just siphon existing skills away from important national priorities like housing and energy transition,” Wright said. “Data centers that invest in Australian energy and skills are welcome here – ones that drive up power prices, take drinking water and lock young people out of jobs are not.”
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