Data Centres: Australia

In Australia, there is a trend for accelerated programmes, which has resulted in developers pushing for modular/prefabrication deployment models and design standardisation. Developers are also seeking to compress delivery timeframes, avoid cost volatility and mitigate labour constraints.

There is also a heightened focus on power-side risk, including grid-connection delays. Similar to solar panel infrastructure, grid connection and end of project commissioning can lead to extended delays.

Additionally, it is necessary for developers and contractors to factor in onerous design requirements, such as fire engineering and liquid-cooling requirements. 

Finally, the Federal government is developing a set of national data centre principles for release in early 2026. Two key co-requisites for data centre investment will be investment in renewable energy generation and water sustainability (Ministerial Address to the Lowy Institute: Artificial Intelligence and Australia’s National Interest | Ministers for the Department of Industry, Science and Resources).

This is likely to require developers to provide at least some of their own behind the meter renewable energy solutions and energy storage solutions. Developers will be looking to contractors to support them in meeting these and any other requirements that are included in the national principles.