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Stop the Data Drain

Big tech is racing to build massive data centres across Australia and there are no national rules governing how they do it. There are already 162 operating, with another 90 in the pipeline - including some of the largest in the world.

Data centres use huge amounts of water and energy, pushing up power bills and threatening to wipe out years of emissions progress. Power prices could increase by up to 26% while they're on track to take up to a quarter of Sydney's within a decade.

Right now, the rollout is being fast-tracked through state planning systems that shut out councils and residents. The community gets the noise, the strain and the higher bills, with no say in what's built on its doorstep.

Done right, the data centre boom doesn't have to cost Australians. With the right national framework, we can protect our water and environment, keep power bills down and make sure Australians share in the benefits..

We need to pause new approvals, establish nationally consistent standards. Let's make sure that when global tech companies come to build here, it's on Australia's terms and for Australia's benefit.

Stop the Data Drain
  • Hit pause. Right now, dozens of massive new data centres are being pushed through without a plan. We demand no new approvals until there are enforceable national rules in place.
  • Power it with renewables. Right now, data centres are lining up to build dirty new gas plants – all while pushing up our wholesale electricity prices by as much as 26%. We demand that all data centres must bring 100% new renewable energy to the grid – and that not one new gas plant is built.
  • Hands off our water. Right now, data centres in Sydney alone are on track to swallow up to a quarter of the city's drinking water by 2035. We demand a cap on the amount of water dedicated for data centres and binding water efficiency standards – no data centre should be draining our taps while families face restrictions.
  • Our communities, our say. Right now, data centres are being pushed through a fast-track planning system that shuts out councils and residents. Communities hosting these developments get the impacts – the noise, the water pressure, the power bills – but no seat at the table. We demand genuine community consultation shape what gets built in their backyard.
  • Pay your fair share. Right now, Microsoft's Australian data centre arm pays $0 tax on $1.1 billion in income – while the rest of us are left to pay for the power and water upgrades they need. If you want to build here, you have to pay up. We demand binding minimum taxes on data centre revenue to make sure they pay their fair share.
Data centres are industrial-scale facilities – warehouses packed with servers – that power everything from cloud storage to artificial intelligence. Every time you use ChatGPT, stream a show, or back up your phone, a data centre is doing the work. They run 24 hours a day, seven days a week, drawing enormous amounts of electricity and water to keep their equipment cool. They're a real part of modern life – but at the scale now being planned for Australia, they're putting serious pressure on our power grid, our water supply, and our communities.
Australia is the second most sought-after destination for data centre investment in the world, behind only the United States. There are already 162 operating here, with more than 90 more in the pipeline, including some of the largest in the world. The global AI boom has triggered a land rush – and we're at the centre of it. One company reportedly told the government it wants 5 gigawatts of computing power here by 2030, eventually scaling to 20 gigawatts – which former chief scientist Alan Finkel says would represent roughly a 60% increase in Australia's entire electricity generation capacity. The government's response? The tech giants are moving fast while we have no plan in place to control them.
The costs are already landing on us. That constant, round-the-clock demand is pushing up wholesale electricity prices – and some operators are locking in new gas plants to feed it. If that continues, wholesale electricity prices in NSW could rise by up to 26% by 2035. Water is the other crisis: Sydney Water's own projections show data centres could consume up to a quarter of Sydney's available water supply by 2035. And the jobs and tax revenue we'd expect in return? Microsoft's Australian data centre arm paid $0 in tax on $1.1 billion in income in 2022–23. The profits are flowing offshore. The bills are staying here.

TELL LABOR: PAUSE, PLAN & MAKE BIG TECH PAY

We call on the Albanese Government to immediately pause new data centre approvals and put in place a national framework with enforceable standards: 100% renewable energy, binding water efficiency limits, genuine community consultation, and minimum taxes so big tech pays its fair share. Australia's land, energy and water aren't a free resource for offshore corporations.


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