Western Australia could capture a significant share of the booming global data economy, but only with the right policy settings and energy foundations in place, according to CCIWA’s new report Powering AI: Western Australia’s data centre opportunity.
The report finds that as AI, automation and cloud computing accelerate worldwide, demand for data processing is soaring.
With global investment in data centres expected to double by 2032 and Australia’s market forecast to reach $46 billion by 2029, WA is well-placed to enter a “data gold rush”.
WA’s competitive edge
Data centres underpin essential digital services, from banking and streaming to high-performance AI workloads.
But while Australia hosts more than 300 data centres nationally, WA has just 27, leaving substantial room for growth.
CCIWA Head of Policy Dr Anthea Wesley says WA can become a data centre hotspot.
“We’ve got plenty of land, a diversification agenda that is only achievable with advanced data processes, and we’re close to Asia,” she says.
“WA also has clean, reliable and relatively lower-cost energy – something we would need to protect fiercely to make the data centre dream a reality.”
The report notes WA’s strategic location between major Asia-Pacific markets, undersea cable connectivity and strong energy mix give the State advantages over-crowded East Coast and international hubs.
‘Data is the new gold’
Demand for data is escalating rapidly. The volume of online data transferred globally increased 100-fold between 2016 and 2023, with AI workloads now requiring far more power than traditional digital services.
Energy constraints in major hubs – including Singapore, Sydney and parts of Europe – are pushing operators to seek new markets with reliable energy and available land.
Wesley says this shift presents a rare economic opportunity for WA.
“Data is the new gold in our economy, and data centres are the engine rooms that drive that. They are just as critical as energy transmission, ports and road infrastructure,” she said.
“Just like the gold rush drove innovation, infrastructure and investment, so too can the global appetite for data to deliver on things like AI, automation and advances in life sciences, space and defence.”
Powering WA’s future industries
The report highlights the transformative benefits of increasing WA’s data centre capacity. Local facilities would:
- Underpin automation and advanced analytics for safety and productivity gains in mining and resources
- Accelerate breakthroughs in life sciences, including drug discovery and personalised medicine
- Support secure data storage for defence and AUKUS activities
- Strengthen WA’s fast-growing space and advanced technology sector
Reliable, affordable energy is key
Data centres are highly energy-intensive, often consuming 10-50 times more power than commercial buildings. This demand in Australia is expected to more than double by 2030.
WA’s abundant natural gas supply, high-capacity renewable potential and opportunities to co-locate data centres with generation sites to reduce grid congestion and costs offer a competitive advantage.
“WA has ideal conditions for wind and solar energy, as well as natural gas to drive electricity supply, providing cleaner, reliable and more affordable electricity,” Wesley says
“The increased demand for energy-hungry data centres may underpin private sector investment in renewables, which will benefit the whole economy.”
What WA must do next
The report makes four recommendations to the State and Federal Governments:
- Develop a data centre strategy
- Ensure reliable and affordable energy supply by backing gas
- Build an investment-friendly policy environment, including supporting carbon capture technologies and reviewing the safeguard mechanism
- Establish a single State Government touchpoint for investors
CCIWA warns the global race for data infrastructure is intensifying and WA must move quickly to secure its position.
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