Arizona and NSW implement new data centre infrastructure rules

Regulators in Arizona and New South Wales are implementing new frameworks to manage the rapid expansion of data centres and ensure infrastructure costs are not passed to residential consumers.

In Arizona, the Arizona Corporation Commission has approved a process for electric cooperatives to seek review of agreements with large-load customers. This measure aims to ensure that new facilities, such as data centres, cover their own costs for infrastructure and transmission, preventing rural ratepayers from subsidizing these energy-intensive projects.

In New South Wales, the government has unveiled the NSW Data Centre Policy Framework. This policy offers fast-tracked 75-day assessment approvals for developers who meet strict environmental, water, and energy standards. Under these rules, data centre operators must fund additional water and energy supplies to ensure they do not impose a net cost on local communities. The state currently has a $50 billion pipeline of 19 major projects, with more than 60 facilities already operating or under construction. The reforms also include the establishment of an Office of AI to coordinate policy and support renewable energy investment.