As the world’s appetite for digital connectivity grows, the physical infrastructure behind it, the data centre, has become one of the most critical elements of modern society. In Australia, this transformation is being shaped not only by global trends in AI, cloud computing and sustainability, but also by local regulatory, environmental, and energy market conditions. Designing and operating data centres here requires a balance of international best practice with rigorous compliance under the NCC, Australian Standards, and state-based planning controls. These factors influence everything from site selection to energy strategy, climate resilience, and accessibility compliance. In this evolving landscape, understanding how to align design ambition with statutory obligations is key to delivering facilities that are both operationally robust and future-ready.
Critical infrastructure
Whether we are logging on for work, managing finances or heating our homes, individuals and organisations rely on the internet to conduct our day-to-day activities. We live in a society that is permanently online and connected. Industries from manufacturing to construction depend on the IoT to drive production and boost efficiency. Doctors leverage data to improve patient outcomes and banks use it to tackle fraud. Organisations large and small use social media to attract new customers.
Against this backdrop, with data centres being the buildings that store and process the data we generate, they have become an essential part of our society’s fabric. The UK government designated data centres as Critical National Infrastructure, becoming one of a growing list of countries, including the US, to acknowledge the criticality of these facilities, putting them on equal footing with water, energy and emergency services systems. This designation recognises the potentially devastating effects of data centre outages and highlights the need to consider closely the future of data centre development and management. In Australia, the SOCI Act 2018 defines data storage and processing as one of the 11 critical infrastructure sectors and identifies data centres as potential ‘critical data storage or processing assets’. The Federal Government can designate select data centres as Systems of National Significance, attaching enhanced cybersecurity obligations including incident response plans, vulnerability assessments, cyber drills and system data reporting.
An opportunity
By 2029, global internet users are projected to reach 7.9 billion, a staggering 47% increase from the 5.3 billion of 2024 (Forbes). Every search, every download, every transaction requires more data to support our needs, with customer expectations around security and processing capability on the rise too. Global data storage is predicted to surpass 200 zettabytes (where 1 ZB is equal to 1 trillion GB) this year to meet this demand. When this internet usage is coupled with the explosive growth of AI workloads, the pressure to boost data centre capacity becomes immense.
Despite this pressure, the industry has an incredible opportunity to support this revolutionary technology. Where many sectors, such as healthcare, have needed to focus on retrofit to meet capacity and sustainability demands, we have a unique moment to design, build and operate efficient infrastructure now that will meet the emerging demand. Globally, 85% of data centres are not yet ready for AI-heavy workloads, according to BCS Consultancy’s 2025 Data Centre Outlook. That figure is almost certainly mirrored in Australia, where legacy facilities and even modern Tier III’s are under mounting pressure to deliver unprecedented levels of power, density, and thermal control, all while maintaining strict compliance with evolving standards and community expectations.
The pitfalls of retrofitting for AI
While many operators are racing to shoehorn AI workloads into existing DC’s, our experience shows this path is rarely smooth. Retrofitting may appear faster and cheaper on paper, but it often unravels under the weight of practical and compliance realities;
AI racks can run at 2–3 times the power density of traditional enterprise loads. Standard white space cooling (even with CRAC/CRAH upgrades) cannot maintain stable conditions once racks exceed ~30–40kW. Retrofitting chilled water or immersion systems into legacy floors often triggers structural, drainage, and redundancy limitations.
Legacy switchboards and cable reticulation were never designed for the step-changes in substation demand that AI brings. Trying to densify power often creates backfeed risks, voltage drop issues, and stranded capacity unless the entire electrical backbone is rebuilt.
High-density loads coupled with new cooling mediums (such as immersion or direct-to-chip liquid) create fire and contamination risks outside the assumptions of the original fire safety design. This forces performance solutions, delayed approvals and, more often than not, major rework.
Immersion tanks, secondary pipework, and denser rack clusters increase static and dynamic floor loads. Older slab designs that once handled 1,000kg/m² quickly become the limiting factor, requiring invasive reinforcement works.
Lithium-ion battery systems and the challenge of in-rack deployment
As newer lithium-ion systems are introduced into operational IT environments, Building Surveyors are no longer treating batteries as ‘business as usual’. The NCC now recognises lithium-ion as a special hazard under E1D17 and E2D21, requiring a performance-based approach. In Victoria, FRV now expects a Fire Safety Study to be submitted during planning, a shift that must be accounted for early in the approval timeline.
These in-rack systems sit within the white space, directly beside IT equipment and staff. This changes the risk profile significantly compared to battery rooms. A thermal event may release jets of flame and harmful gases, requiring specialised detection, suppression and ventilation solutions. Building Surveyors now expect documentation such as UL 9540A fire test data, emergency gas purge plans, and detection logic tied into BMS protocols.
Designers and developers must account for this hazard from concept stage, ensuring early collaboration between fire engineers, electrical designers and Building Surveyors. The days of treating battery installations as minor services packages are over.
Crossroads
We are at an important decision point; integrating new technology into existing infrastructure can introduce risks. The tight coupling of DC systems means that the interconnectivity and dependencies between the physical infrastructure, IT systems and software is complex. It is difficult to comprehend the potential impacts a single design change in one part of the system may have on another, particularly in the long term. For example, transitioning from traditional wet-cell batteries to newer Lithium-ion options may seem like a simple upgrade for space and maintenance savings. However, it is essential to consider the broader implications, including environmental factors and the ongoing effectiveness of fire-suppression systems.
As new technology emerges and we look to a future shaped by AI, one solution will not fit all. The key will be balancing short-term capacity gains and efficiency with long-term sustainability. This means avoiding shortcuts, which may harm operational integrity and compromise quality, as well as closely considering climate and sustainability impacts. Not only does the industry need to mitigate the environmental footprint of DCs (a hyperscale data centre can use up to 750 million litres of water per year to cool its hardware), but it must also ensure its own resilience in the face of extreme weather patterns and rising temperatures, which could significantly impact operations.
Thinking through these design and operational considerations now as we embark on large-scale build programs that will be with us for decades to come is critical, as is finding the talent and expertise to run and operate these facilities. When it comes to the fundamentals of sustainability, reliability and safety, the industry needs to see all operators collaborating and setting standards that will support environmental goals, drive customer satisfaction and meet consumer demand. We believe the question is no longer ‘will AI arrive?’ because it already has. The real question is ‘can your facility handle it, and prove it?’
Powering standards
The first step is to adopt globally recognised design standards befitting of critical infrastructure. Europe has seen the implementation of the EN 50600 standard series covering aspects of DC design, power, security, cooling and sustainability, with its counterpart, the ISO 22237 series, also addressing building construction, power distribution, communications cabling, security and protection. While allowing for flexibility on strategy, EN 50600 sets specific standards related to energy management and environmental viability, requiring data centres to look at total energy consumption, renewable energy sources and reusing waste heat.
In the Australian market, while EN 50600 and ISO 22237 are increasingly referenced for large-scale data centre projects, compliance is still underpinned by local frameworks. Key electrical standards include AS/NZS 3000 (Wiring Rules), AS/NZS 3010 for backup power generating sets, and AS/NZS 3017 for commissioning and verification. In addition, the NABERS Energy for Data Centres scheme provides the nationally recognised performance framework for measuring energy efficiency, with Power Usage Effectiveness (PUE) as a core metric. Building Surveyors play a critical role in ensuring that global design standards integrate smoothly with these local compliance requirements, avoiding conflicts between performance targets and statutory obligations.
Power is and will remain a considerable challenge for data centres. New, large facilities can require the electrical supply equivalent to 750,000 homes. Optimising energy usage remains an urgent need, with concerns surrounding the Australian grid’s ability to meet energy demand during peak periods. In addition, consideration needs to be given to the impact emissions may have on climate change, with the global emissions projected to reach 2.5 billion tonnes of CO2 equivalent by 2030.
The EN 50600-4-6 standard encourages facilities to reuse energy externally and provides metrics on how to measure it. We are already seeing examples overseas of DCs that have been integrated into district heating systems, ensuring that the heat they generate does not go to waste. However, practical challenges, such as contractual obligations and liability concerns, are complicating this seemingly simple solution. Clear standards and guidelines that underpin best practice will help drive innovation in design and support the growth of the industry.
Protection
Managing external security threats, as well as internal and external environmental threats, like flooding and overheating, must also be top of mind as we meet demand for data storage. Standards such as ISO 22237 provide an initial framework for prioritising protection in design with requirements and recommendations for active and passive measures.
It is impossible to disconnect this challenge from climate risk. In regions like Western Europe, for example, extended heatwaves are pushing the limits of traditional cooling systems that have not been designed to handle rising temperatures, and some facilities have found themselves hiring mid-scale commercial cooling fans to address the issue. As we look forward, we need greater dialogue on how we can overcome these threats.
Designing for the future
The world is changing at a rapid rate, and it is difficult to predict how technological advancements in AI and IT hardware will continue to shape demands on data centres into the future. That said, with generative AI set to become a $1.3 trillion global market by 2032, power demands on servers can be expected to increase exponentially and the industry must design data centres to support tomorrow’s technology.
As more data centres are built, they will generate more heat and emissions, while using more water. This will lead to potential increases in environmental concerns, along with corresponding legislation. Germany already mandates that 10% of heat generated by DCs must be reused by 2027, and by 2026 all facilities with a nominal connected load of >1 MW will need to be certified to the ISO 50001 Energy Management standard. As new data centres are brought online and existing ones are potentially retrofitted, we must design with continued environmental challenges in mind and anticipate future regulatory changes.
Data centres could play a pivotal role by becoming ‘prosumers’, feeding power from their battery reserves back into the grid. In Australia, many households are transitioning to become power prosumers, meaning they both consume and produce energy, primarily through rooftop solar systems and increasingly, battery storage systems, which can even include EVs. Innovations like this could deliver data centres that serve as critical infrastructure in more ways than one.
On the other hand, promising solutions such as small modular reactors (SMRs) could enable them to operate completely independent of the grid. However, wider concerns surrounding site positioning, public opinion and a lack of nuclear talent in Australia need to be addressed before these can become large-scale solutions.
Collaboration is key
As we look to the future, the industry must work together to understand and navigate building codes, utilise best practice, improve standards and take the opportunity to design critical infrastructure that continues to serve society. This means collaborating with operators as well as designers and consultants to ensure maintenance issues are addressed; energy companies to help optimise power effectiveness; governments to develop appropriate regulation; and people working on the ground to ensure facilities are purpose-fit for day-to-day management.
From the simplest design considerations, such as locating valve controls so they are accessible for maintenance, to investing in technologies that can drive risk-based and strategic maintenance plans, the industry has much to gain from combining knowledge and expertise from across the value chain.
As we embark on a generational build program to meet demand for data storage and processing, we will be much stronger if we are working as one. This starts with industry-led forums to drive standards, encourage transparency and improve clarity on performance metrics, which will allow us to reap the benefits of increased innovation, ensuring long-term sustainability, reliability and safety.