NELA's Climate Change Working Group (CCWG) welcomed the opportunity to make a submission to the Senate Environment and Communications References Committee's Inquiry on Artificial Intelligence and Data Centres. The submission examines how well current legal and regulatory frameworks manage the environmental impacts of data centres, and offers advice to guide the Federal Government's proposed national data centre legislation and the Australian Standards for AI.
The submission notes that data centres' share of Australia's grid-supplied electricity is projected to rise from 2% to 12% by 2049–50. This growth comes at a time when Australia's emissions reduction targets are already at risk. Drawing on the International Court of Justice's Advisory Opinion on Climate Obligations (2025) and the precautionary principle, the CCWG argues that data centre growth must align with Australia's legislated climate targets and the 1.5°C goal under the Paris Agreement. It also suggests that an interim moratorium on large data centres be considered.
The CCWG recommends binding national framework legislation that harmonises fragmented state and territory approaches. It calls for mandatory new renewable energy to offset Scope 1 and 2 emissions, including renewable-backed battery back-up in place of diesel generators. Its other recommendations include robust Environmental Impact Assessments that account for cumulative impacts and avoid fast-track approvals, water practices that align with international best practice, enforceable social licence commitments, and National Data Centre Performance Standards with comprehensive reporting of energy, water and Scope 1, 2 and 3 emissions.
The full submission can be found here.