The Hon. Tim Ayres, Minister for Industry and Innovation and Minister for Science; The Hon. Chris Bowen, Minister for Climate Change and Energy; The Hon. Andrew Charlton, Assistant Minister for Science, Technology and the Digital Economy, Joint Media Release, 23 March 2026
Global investment in data centres is accelerating – and Australia is well-placed to lead – but this must happen on terms that benefit the community and deliver for the national interest.
The Albanese Government’s National AI Plan, released in December 2025, sets out our ambition: to harness the benefits of AI while ensuring all Australian’s shares the benefits.
Today we take the next step with the release of Expectations of data centres and AI infrastructure developers – a key commitment under that plan.
The Expectations are designed to make it easier to invest in Australia. By setting clear, nationally consistent signals, they support smoother engagement with communities, stronger coordination with states and territories, and faster progress for projects that are aligned with Australia’s priorities.
The Expectations make clear that data centre developments must put the needs of the Australian people first, ensuring our communities benefit directly through jobs, investment in skills and innovation – while strongly supporting Australia’s clean energy transition and safeguarding our long-term water security.
These five expectations are:
- Prioritise Australia’s national interest
- Support Australia’s energy transition
- Use water sustainably and responsibly
- Invest in Australian skills and jobs
- Strengthen research, innovation and local capability
By asserting its national interests clearly, Australia is taking a major step in outlining how data centres meet their social license. We will work with the states and territories and market participants to implement the expectations, particularly through the Energy and Climate Change Ministerial Council.
The Albanese Government expects data centres and AI infrastructure operators to underwrite new renewable power supply, pay their full share of new grid connectivity so costs are not passed to consumers or businesses, and support Australia’s energy transition through demand flexibility mechanisms.
The Government also expects hyperscalers to make compute available to Australian start-ups seeking to create Australian AI, and partner with our innovation ecosystem.
Australia already attracts strong global investment in data centres, reflecting our competitive edge in renewable energy, robust privacy protections, stable governance and high quality connectivity – and the industry makes an important contribution to our economy and industrial capability. The Expectations leverage these strengths to secure positive outcomes for Australia.
Through regulatory processes, the Australian Government will prioritise proposals most closely aligned with these expectations, and the overarching national expectations will work alongside existing laws and help guide local decisions in each state and territory.
To read the detail of the National Data Centre Expectations in full, visit www.industry.gov.au.
Quotes attributable to Minister for Industry and Innovation and Minister for Science Tim Ayres:
“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.
“Securing this infrastructure onshore strengthens our security, supports our startups and researchers and ensures Australian data benefits Australians – not offshore jurisdictions.
“Australia is open for business – but the kind of business that puts Australia’s national interest first.”
Quotes attributable to Minister for Climate Change and Energy Chris Bowen:
“It’s no surprise that Australia is an attractive investment destination for data centre technology. We’re really proud of our abundant renewable energy resources, our sunshine and wind has already helped us reach 51 per cent renewables on our grid.
“Data centres have great potential to support our grid and expand new renewable investment, but it’s important we work together across jurisdictions and with industry to get the investment settings right so that we can continue to keep our system secure and energy prices low for all consumers.”
Quotes attributable to Assistant Minister for Science, Technology and the Digital Economy,
Dr Andrew Charlton MP:
“The Albanese Government is acting to ensure digital and AI infrastructure investments genuinely benefit Australians and support a strong and resilient economy.
“The Expectations are a major step to set out what Australia requires from data centre companies, so the community can have confidence in their role.
“We will do what is necessary to ensure the growth of AI is sustainable and underpinned by a strong social license.”
