Most people wouldn't even realise: Why Canberra is a data centre hotspot

By Harry Frost

Topic:Data Centres

NEXTDC runs a data centre in the north Canberra suburb of Bruce. (ABC News: Matt Roberts)

In short:

Canberra is already home to more than a dozen data centres, with further developments proposed in Beard and potentially Hume.

Chief Minister Andrew Barr says there is no need to pause the development of new data centres because the ACT's standards will likely meet or exceed proposed national rules.

What's next?

The national data centre standards are expected to be legislated early next year.

Many might not have noticed they are there, but facilities on industrial estates across Canberra — and in at least one instance in the suburbs at Bruce — are housing vast amounts of data and increasingly AI.

The ACT government estimates there are already 15 data centres in Canberra, and says there are proposals for a new one in Beard, as well as a possible extension to another in Hume.

CDC Data Centres operates eight data centres across four campuses in the ACT, employing about 250 people.

The company's chief executive, Greg Boorer, set up their first data centre in Canberra in 2007.

CDC Data Centres CEO Greg Boorer says investment in renewable energy generation and "closed-loop" cooling systems have helped allay local community concerns about data centres. (Harry Frost: ABC News)

He says the city's cool climate, close proximity to the federal government — a major client — and 100 per cent renewables-sourced electricity make it an ideal location.

"Canberra is great because it's actually quite cool and cold in winter," Mr Boorer said.

"But even during summer, it actually gets very pleasant in the evenings because of the altitude.

"So in a year-round sense, it's actually the coldest place in Australia that has all of the ingredients: so the energy, the power, the data connectivity and also the educated workforce that can actually make this industry very successful.

ACT data centres avoid community backlash seen overseas

With servers in a data centre generating a lot of heat, temperatures and stable power supply are key factors for operators.

CDC's data centre in Beard, which is still being fitted out, will have a total capacity of 40 megawatts (MW).

Compared to the entire ACT's highest recorded peak electricity demand last year of 732 MW — it is a lot of power.

The CDC Data Centres facility in the industrial suburb of Beard will have a total capacity of 40 MW when completed. (Harry Frost: ABC News)

Data centres also traditionally use tens of thousands of litres of water per year for cooling, which places increased pressure on local supplies.

Those demands on resources have — in part — prompted protests against data centres in parts of Australia and around the world.

But opposition to data centres in the ACT has been less vocal, which operators attribute to the use of "closed-loop" cooling systems that do not draw on the local water supply, as well as investment in renewable energy.

He said many developments in the United States had not necessarily been in the right location, or operators had taken an "almost selfish approach".

"They're not thinking about how that generation could be leveraged across the grids for the benefit of the community more generally," he said.

"And so there hasn't been a lot of necessary benefit sharing from those types of developments.

The demands on energy and water supplies caused by data centres have prompted protests in communities around the world. (Supplied: Friends of the Earth)

Mr Boorer said the ACT had "a really consistent" set of planning laws and standards that the industry operated within.

"We have a national energy market, which is much more, I guess, sophisticated and mature and it's more sensibly arranged," he said.

"We match 100 per cent of our energy consumption with renewable energy today.

Barr says ACT already ahead of proposed national data centre rules

Last month the federal government announced future large-scale AI data centres could face mandatory requirements including minimising water use, underwriting new electricity generation and paying the full cost of connecting to the grid.

Chief Minister Andrew Barr says policy and practice around data centres in the ACT already aligns with the prime minister's intent for a new set of national standards and oversight for artificial intelligence.

Planning laws allow data centres in areas of the ACT zoned for industrial and services as well as broadacre sites outside urban areas — subject to planning rules and approvals processes.

Chief Minister Andrew Barr says data centres in the ACT already align with Prime Minister Anthony Albanese's intent for a new set of national standards. (ABC News)

"In the Australian context I think we sit at the ethical end of data centres and AI use, because it is principally around research institutions, government, national security and defence," Mr Barr said.

"Really the national scheme, if you like, would be catching up with where the ACT is at, not creating a new set of benchmarks that would exceed what we already do in the territory.

"It really is a best-in-class location for a certain type of data centre.

"But not the hyper‑scale ones that have perhaps more commercial and beyond‑government and security uses. They tend to go to larger and different markets, elsewhere in the world mostly.

Barr rejects pause on ACT data centre development

The federal government's proposal has prompted calls from community groups and the Greens for a moratorium on the development of large data centres until the rules are in place.

Mr Barr said the ACT government does not support a pause or halt to "responsible data centre development" while the national framework is being finalised.

"The ACT already has rigorous planning, environmental, utility and regulatory requirements and all development applications are considered on their individual merits and must comply with relevant planning, environmental and regulatory requirements.

There are already more than a dozen data centres in Canberra, including this NEXTDC one in Bruce. (ABC News: Matt Roberts)

Mr Boorer agrees the industry is likely to continue to expand in the ACT.

"I think Australia more generally is very attractive because of the political stability, the geopolitical kind of confidence that people have in Australia, the rule of law, the fact that we're a member of the Five Eyes Intelligence community," he said.

"They really do trust Australia and the Australian government — in any flavour to do the right thing and have high standards.

"We applaud the federal government actually taking control of the narrative around data centres and setting high standards because that will encourage the correct behaviour.

Practice Listening