Data centre operators on board with energy rules

NewsNationalSaveShareNewsNationalNews HomeHome/News/NationalBillions in tech infrastructure needed for data centresBy Will Nicholas and Lucinda Garbutt-YoungOctober 8 2026 - 7:14pmBy Will Nicholas and Lucinda Garbutt-YoungOctober 8 2026 - 7:14pmSaveShareTelecommunications and tech executives were grilled about data centres at a parliamentary inquiry. Photo: Mick Tsikas/AAP PHOTOSAustralia needs more investment in regional digital infrastructure before data centres can be built away from homes, an inquiry has heard. The nation has about 1. 6 gigawatts of data centre capacity, which is likely to extend to three gigawatts by the 2030 financial year. Much of that capacity ought to be in regional areas, where there is adequate land for development and limited noise pollution near homes, Telstra executives told a government committee on Thursday. Regional areas have the capacity, but not the infrastructure, for data centres. (Stephanie Gardiner/AAP PHOTOS)But for that to happen, thousands of kilometres of physical network, including ramps that allow connection points for regional hubs, need to be built. Telstra is creating 30 of those connection points across the country through its Aura Network, expected to cost $1. 8 billion. "Our role is to ensure that all Australians can participate in this digital economy," head of Telstra digital infrastructure Steven Worrall said. Community backlash about data centre locations has grown in recent years. Developer The Goodman Group abandoned plans for a $1. 2 billion project in Sydney's Lane Cove after intense scrutiny about its location near homes. In September, AI giant Anthropic signed a deal for a $32 billion data hub in Queensland's Western Downs. It would be the largest centre of its kind in the country, and one of the only large-scale sites based rurally. Communities are increasingly pushing back against data centres in their backyard. (James Ross/AAP PHOTOS)Though it is expected to inject revenue into the surrounding towns, some locals are concerned their businesses will be steamrolled. The government inquiry has been hearing about these sorts of tensions for several days as it probes businesses, big tech and advocacy groups on Australia's AI future. It's an issue being grappled with at an international level. Prime Minister Anthony Albanese this week met with Father Paolo Benanti, who has advised the Vatican on AI take-up, about Australia's role globally. Like many countries, Australia is planning to bring in national AI standards. They are set to be drafted by the end of the year and will require newly built data centres to offset all of their electricity consumption with renewable energy investment. Data centres could be used to underwrite Australia's renewable energy transition, the inquiry heard.