Getting it right: Building AI infrastructure that works for Australia

Our stand: Our submission to the Federal Government says data centres should bring their own clean energy, and households shouldn’t pay for theirs.

Australia is about to build a lot of data centres to run AI. The national energy market operator expects their electricity use to rise roughly seven-fold by 2035–36, from about 3% of grid demand to 13%.

That much new demand has to come from somewhere. If it isn’t matched by new renewables and storage, it pulls from existing supply. That pushes up wholesale prices for everyone and keeps ageing coal and gas plants running longer. One analysis puts NSW wholesale prices up to 26% higher by 2035 in that scenario.

On 7 October, Zero Emissions Byron | Northern Rivers made a submission to the Department of the Prime Minister and Cabinet’s consultation, Getting it right: Building AI infrastructure that works for Australia. Our position is simple. Data centres can help the energy transition, but only if the rules are enforceable, not voluntary.

What we asked for

• Bring your own clean power. Large data centres should fully offset their demand with new renewable generation and firming, built before or alongside the load, not after.
• No diesel backup. On-site generation and backup should be renewable only. Contracts for power should be for renewable electricity only.
• Don’t pass the bill on. Operators should pay the full cost of network connections and upgrades, so those costs don’t land on households and local businesses.
• Water first, then cooling. Use recycled and non-potable water first and drinking water last, with efficiency standards that tighten over time. Water use is set to roughly triple within five years.
• One national rule. If each state sets its own rules, operators shop around for the weakest ones.
• First Nations as partners. Traditional Owners should be involved from the earliest feasibility stage, before sites are shortlisted, with free, prior and informed consent.

Why it matters here

Regional areas like ours are in the frame for future sites because they have land, sun and wind. That can be an opportunity: new demand that underwrites new local renewables. But only if communities are part of the decision and aren’t left carrying the costs.

Read the full submission -> Zero Emissions Byron Office of AI Submission 7 October 2026