The Conservation Council is calling for a moratorium on new and expanded data centre developments in the Australian Capital Territory, citing concerns about potential expansion and its effects on energy and water supplies before proper checks and balances are in place.
Conservation Council ACT director Simon Copland said the government should halt development of data centres in Canberra until tougher regulations were in place locally and federally.
“This is a point of time, given the growth of AI, that we need to stop and have a conversation about this rather than rushing to approve everything,” Copland said. “We think that the government should be putting in a moratorium until we get the rules right about how we can develop this industry into the future.”
There are currently fifteen data centres across the ACT, the first built in 2007. A proposed $200 million CDC Data Centre in Beard, near Canberra Airport, was conditionally approved in September. The three-storey building would contain 12 data halls and sit next to another CDC centre in the suburb. CDC’s first Beard centre is expected to have a total capacity of 40 megawatts (MW). The application was submitted a week before the ACT government promised to develop a data centre framework to “provide clear rules about where data centres can be located, the standards they must meet, and how proposals will be assessed”.
Copland said the first stage of the Beard development was expected to use 5 per cent of the ACT’s peak energy, with the proposed second centre using “double that”. He also said there was community-wide concern about data centres’ impact on Canberra’s water supply, and that climate forecasts suggest the ACT will see reduced water flows through its major rivers. Copland said data centres must operate in areas with a secure water supply, and that he would like to see investment in closed-loop cooling technology.
The ACT Greens and other community groups have also called for a moratorium, but Chief Minister Andrew Barr dismissed the idea in August, saying “the ACT already has rigorous planning, environmental, utility and regulatory requirements”.
Federally, the government is developing national standards for artificial intelligence, including requiring large-scale AI data centres to minimise water use and fund their own power supply. In June, independent Senator David Pocock called for a tax on data centre operators and stronger environmental protections.
Concerns about data centres are not confined to Canberra. Community backlash saw plans for an AI data centre in Sydney’s Cooks River scrapped, and plans for centres in Lane Cove and Guildford were dropped in September.
CDC chief executive Greg Boorer said the company already uses closed-loop cooling and that over 20 years of operating in Canberra “nobody’s ever complained about our facilities”. He said Australia’s planning rules had helped the sector avoid the “free for all” seen in parts of the United States, and said it was time for the sector to be more proactive in engaging with local communities. “We actually have to do a better job,” Boorer said. “The last thing you want is for a community to find out about a data centre proposal through some planning portal on a government website.”
Analysis
Why This Matters
- Data centres consume large amounts of electricity and water; their rapid expansion could strain Canberra's grid and water supply, affecting households and businesses.
- The outcome of this debate may set a precedent for how other Australian jurisdictions regulate AI infrastructure.
- The federal government is developing national standards, and local opposition is already forcing projects to be abandoned in Sydney.
Background
Data centres house servers that power cloud computing and AI services. The ACT has become an attractive location because of its access to renewable energy and political stability, but critics argue planning rules have not kept pace with the sector's growth. The Conservation Council, Greens and other groups have been pushing for tighter controls since at least mid-2026.
Key Perspectives
Conservation Council ACT director Simon Copland: Wants a moratorium on new data centres until the government puts in place rules governing energy, water, biodiversity and community impact; warns the Beard expansion alone would consume significant peak energy.
Chief Minister Andrew Barr: Dismissed the moratorium call in August, arguing the ACT already has rigorous planning, environmental, utility and regulatory requirements.
CDC chief executive Greg Boorer: Says Australia's planning rules have prevented the worst excesses seen in the US; acknowledges the industry needs to be more proactive in community engagement.
What to Watch
- Whether the ACT government accelerates its promised data centre framework or signals a moratorium.
- The fate of the conditionally approved CDC Data Centre in Beard, which the Conservation Council wants halted.
- The federal government's draft national AI standards, expected to include water-use and power-supply requirements for large-scale centres.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedThe Conservation Council is calling for a moratorium on new data centres in the ACT because of energy and water concerns.Just In: “The Conservation Council is calling for a moratorium on new and expanded data centre developments in the ACT, amid "increasing concerns" for the city's energy grid and water supplies.”
- SupportedThe Council says data centre expansion could affect the ACT’s grid and water supply.Just In: “we're worried about the impact this is going to have on our energy system, on our water”
- SupportedChief Minister Andrew Barr dismissed the moratorium idea.Just In: “But Chief Minister Andrew Barr dismissed the idea in August”
- SupportedSimon Copland said, “This is a point of time, given the growth of AI, that we need to stop and have a conversation about this rather than rushing to approve everything.”Just In: “"This is a point of time, given the growth of AI, that we need to stop and have a conversation about this rather than rushing to approve everything," Conservation Council ACT director Simon Copland said.”
- SupportedSimon Copland said, “We think that the government should be putting in a moratorium until we get the rules right about how we can develop this industry into the future.”Just In: “"We think that the government should be putting in a moratorium until we get the rules right about how we can develop this industry into the future."”
- SupportedCopland said development should halt until tougher regulations were in place locally and federally.Just In: “Mr Copland said there needed to be a halt on the development of any data centres in Canberra until tougher regulations were in place, both locally and federally.”
- SupportedThere are currently 15 data centres across the ACT.Just In: “There are currently fifteen data centres across the ACT”
- SupportedA proposed $200 million CDC centre in Beard was conditionally approved in September.Just In: “a second CDC Data Centre in Beard, a suburb near Canberra Airport, which was conditionally approved in September. The proposed $200 million centre”
- SupportedThe proposed centre would contain 12 data halls.Just In: “The proposed $200 million centre is a three-storey building comprising of 12 data halls”
- SupportedCDC’s first Beard centre is expected to have a total capacity of 40 megawatts.Just In: “CDC's first centre in Beard is expected to have a total capacity of 40 megawatts (MW).”
- SupportedCopland said the first stage was expected to use 5 per cent of peak ACT energy, with the proposed second centre using double that.Just In: “Mr Copland said the first stage of the Beard development was expected to use 5 per cent of the ACT's peak energy, with the proposed second centre using "double that".”
- SupportedCDC chief executive Greg Boorer said, “nobody’s ever complained about our facilities”.Just In: “But CDC chief executive Greg Boorer said over the past 20 years of operating in Canberra "nobody's ever complained about our facilities"”