The centres, which are booming due to the demand for artificial intelligence, are reputed to be big consumers of water for cooling. Australia already has about 270 data centres, but newer data centres are consuming less water.
Mr Watt said new proposed centres will be roped into new standards under the Environmental Protection and Biodiversity Act.
“When it comes to data centres, the way the federal environmental law works is that any project ‒ whether it be a data centre, a mine, a wind farm, a housing development ‒ if that project is likely to have a significant impact on one of the matters that we regulate at a federal level, then that project needs to be referred for a federal assessment and approval to make sure that its environmental impacts are managed, mitigated and offset,” Mr Watt said recently.
“So, a data centre would be treated no differently to any other project. If they're going to have an impact on one of those things like threatened species or water triggers, water levels, then it would require assessment.
“A lot of the responsibilities when it comes to water management in Australia are held at the state level. And so what we need to do is work with states to make sure that they have good, strong, enforceable systems setting those requirements of data centres when it comes to water use.
“And when I meet with water ministers in August this year, we'll follow up discussions that we've already had when it comes to water use as well.”
There are two data centres located in the Murray Valley, at Albury.
While data centres have a history of high water demand, newer technologies are being introduced to address energy and water consumption.
University of Melbourne senior lecturer in construction technology, Dr M. Reza Hosseini, said the growing trend was influenced by the demand for artificial intelligence.
“We have a growing demand for AI; that is the driving force behind a new wave of construction for data centres in places like Melbourne.
He pointed out that Australia was among the top six countries, per capita, for the development of data centres.
Historically he said there had been guidelines but no planning requirements for establishing data centres but there was a growing move to improve sustainability and transparency of energy and water demand.
“Old fashioned data centres used water mainly for cooling but new generation centres use recycled water, grey water and even sea water. They can substantially reduce the amount they can consume.
“Old fashioned ones used about, for example, 1.8 litres/kilowatt; the newer ones can consume about 0.2 litres/kilowatt.
“And some new centres consume zero water. The only water they need is for initial supply to the closed-loop system,” Dr Hosseini said.
He said Australia had 278 data centres, which was relatively high compared to the population of Australia.
Australia seemed to be a choice as a safe environment for international centres.
“It’s the aim of the government to make Australia attractive for these centres.”
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