SEC’s response to the Building AI infrastructure that works for Australia: Consultation paper
Date: 9th October 2026
Submitted to: Department of the Prime Minister and Cabinet – October 2026
Short Description
The Smart Energy Council provided a submission to the Department of the Prime Minister and Cabinet’s consultation on mandatory Australian Standards for large data centres and AI infrastructure.
We welcome AI investment in Australia but emphasise that data centres must bring new clean energy with them rather than drawing on the supply households and businesses rely on.
Our recommendations include requiring data centres to match 100 per cent of their electricity use with new and additional renewable generation, verified through Renewable Electricity Guarantee of Origin (REGO) certificates and recognising power purchase agreements and contracts under the Electricity Services Entry Mechanism (ESEM); firming that supply with storage rather than gas; removing the diesel fuel tax credit for backup generation; ensuring data centres pay the full cost of the network connections and upgrades they trigger; and requiring transparent, facility-level reporting of energy use.
This submission will help shape a range of upcoming Commonwealth reforms related to data centre industry development.
