Australia is in the middle of a rapid data centre rollout. Warehouses full of computer servers that run the artificial intelligence (AI) tools society increasingly uses are being built at pace, and they draw heavily on essential resources.

Data centres need large amounts of electricity, water and land. Without the right planning and oversight, developers will secure what they need at the expense of Australia’s economy, nature and communities.

Without careful design, data centres could increase power bills, put pressure on water supplies, and slow the transition to net zero. With it, they can do the opposite, stabilising the electricity grid, attracting investment to regions, and creating economic growth.

It’s tempting to think futuristic technologies could make these problems disappear – things like putting data centres underwater or in space. These may eventually matter, but for now they are small-scale experiments, a long way from being able to absorb the gigawatts of demand Australia needs to plan for over the coming decade.

The Australian government is currently designing the rules that will govern AI and data centres, with national legislation expected in early 2027. So what does a good data centre future look like? And what needs to go into those rules to make this a reality?

Data centres have existed for decades. But something has changed, and this essential infrastructure is now at the centre of a major policy debate.

This article is part of The Conversation’s........

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