The Australian Government has released a new set of expectations for data centres and AI infrastructure developers, outlining how growing investment in the sector should deliver benefits for the national interest while supporting economic and environmental priorities.
In a joint media release, the government said global investment in data centres is accelerating and positioned Australia as well placed to lead, provided development occurs “on terms that benefit the community and deliver for the national interest.”
The framework, titled the National Data Centre Expectations, builds on the government’s National AI Plan released in December 2025. It aims to provide clearer, nationally consistent guidance to support investment while ensuring projects align with Australia’s policy priorities.
According to the Australian Government, the expectations are intended to streamline engagement with communities, improve coordination with states and territories, and enable faster project progress where proposals meet national objectives.
“The Expectations are designed to make it easier to invest in Australia,” the release states, while emphasising that developments must “put the needs of the Australian people first.”
The framework outlines five key priorities: prioritising the national interest, supporting the energy transition, ensuring sustainable water use, investing in local skills and jobs, and strengthening research and innovation capabilities.
Minister for Industry and Innovation and Minister for Science Tim Ayres said the policy reflects the role of AI and infrastructure investment in addressing national challenges.
“Australia has a significant number of national challenges to solve – and AI, data centre investment and advanced industrial and technological capability can help us get there,” he said.
He added that onshore infrastructure would “strengthen our security, support our startups and researchers and ensure Australian data benefits Australians – not offshore jurisdictions.”
Minister for Climate Change and Energy Chris Bowen said Australia’s renewable energy capacity contributes to its attractiveness as an investment destination, noting that renewables account for 51 per cent of the national grid.
“Data centres have great potential to support our grid and expand new renewable investment,” he said, adding that coordination across governments and industry would be needed to maintain system security and manage energy costs.
Assistant Minister for Science, Technology and the Digital Economy Dr Andrew Charlton said the expectations are intended to ensure AI and digital infrastructure investments contribute to a “strong and resilient economy.”
He said the framework would help set clear requirements for industry and build public confidence, adding, “We will do what is necessary to ensure the growth of AI is sustainable and underpinned by a strong social license.”
The government said it expects data centre operators to support new renewable energy supply, cover their share of grid connection costs, and adopt demand flexibility measures.
It also indicated that hyperscale operators should provide compute access to Australian startups and collaborate with the local innovation ecosystem.
The expectations will be implemented in partnership with states, territories and industry, including through the Energy and Climate Change Ministerial Council.
The government said proposals that align closely with the expectations will be prioritised through regulatory processes, with the framework intended to complement existing laws and guide decision-making at the state and territory level.
