Australian Real Estate Weekly "Large DCs to underwrite new power..."

Research evidence excerpt

Australian Real Estate Weekly "Large DCs to underwrite new power..."

Global Research

20 July 2026ab

Australian Real Estate Weekly Equities

AustraliaLarge DCs to underwrite new power generation

Real Estate

Solomon Zhang, CFA

New AI standards to provide national regulatory framework for large DCs/AI Analyst

The Federal Government’s AI plan (see here) proposes mandatory national standards for solomon.zhang@ubs.com

AI and DCs with a new 'Office of AI' established to coordinate their implementation. Key +61-2-9324 2007

components include: 1) Consistent standards: large DCs (the threshold for 'large' has Cody Shield, CFA

not been set) will be subject to enforceable national standards across 'energy, water, Analyst

safety and other requirements', providing a simpler compliance framework and enabling cody.shield@ubs.com

faster DC approvals/delivery; and 2) Power/water obligations: operators will need to +61-2-9324 2903

underwrite sufficient new power generation to offset consumption, fully fund grid Miriam Pritchard

connection costs, reduce demand where required to support grid stability and maximise Analyst

water efficiency. The obligation to underwrite power supply and grid connection is miriam.pritchard@ubs.com

onerous, but given the measures partially formalise the Government's Data Centre +61-2-9324 2270

Expectations announced in Mar-26 (see here), their direction had already been Aman Madhyastha

telegraphed. Nevertheless, local DC operators AirTrunk and NXT have welcomed the Associate Analyst

improved regulatory certainty (see here) with the caveat that execution will ultimately aman.madhyastha@ubs.com

determine the policy's success. National Cabinet will consider the framework in August, +61-2-9324 2000

with the standards expected to be legislated by early next year.