Western Australia could be poised to cash in on a data goldrush, but only if it lays the groundwork now, a new report by CCIWA has found.
Data centres are the engine rooms of the digital world, powering everything we do online – from banking, streaming and scrolling, to advanced AI operations, cloud computing, for automation and complex data analysis.
The CCIWA report, Powering AI: Western Australia’s data centre opportunity, finds WA is well-placed to capitalise on an explosion in demand for data, helping to diversify the economy, ensure our competitiveness, create new jobs and industries, and drive innovation.
However, these facilities need reliable and affordable electricity, creating a challenge for any jurisdiction keen to expand its data centre footprint.
CCIWA’s Head of Policy, Dr Anthea Wesley, said WA has what it takes to become a data centre investment 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 said.
“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.”
Dr Wesley said data centres present a significant 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.”
Investment in data centres in Australia is booming – with forecasts suggesting Australia’s data centre investment will continue to grow by 50 per cent in the next four years, reaching $46 billion by 2029, based on committed projects.
“The opportunities presented by data centres is really exciting,” Dr Wesley said.
“For WA, they will power innovation in our mining and resources sector, underpin new breakthroughs in life sciences and healthcare, as well as defence, space and agriculture.”
Currently, WA is home to just 27 data centres, compared with 256 in the rest of Australia.
Energy consumption from data centres is predicted to double by 2030, with the average data centre using 50 times more than a commercial building with the same floorspace.
“The hunger for energy has created problems for many places that have leaned into data centres, but that presents an opportunity for WA,” Dr Wesley said.
“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.
“The increased demand for energy-hungry data centres may underpin private sector investment in renewables, which will benefit the whole economy.”
The report found there is a need for a Data Centre Strategy from government to ensure the data sector has the support required to expand in WA.
“Local operators that we spoke to as part of this process told us they’ve had interest from Southeast Asian businesses, wanting to host cloud data within WA,” Dr Wesley said.
“Right now, Singapore is dominating the data centre space in the Asia-Pacific, providing around 60% of data centre capacity since 2021. But Singapore is a small, resource-constrained state that has probably reached its capacity, while demand continues to grow exponentially.
“This presents a clear opportunity for WA to step in and service the rapidly growing Asia-Pacific data market.”
The report also called on the WA Government to continue to support gas as a reliable and affordable energy supply to provide energy security for data centre operations and recommended the Federal Government support Carbon Capture technologies for high-emitting industries.
