At a recent Energy Club WA industry event, the discussion highlighted the role gas could potentially play in supporting the state’s energy transition. As coal retires, renewables are expanding rapidly, but Western Australia’s unique demand profile requires firming capacity. Gas-fired generation, while not a long-term substitute for renewables, provides a more efficient and lower-emission bridging option to ensure stability during peak demand.
Alongside this, the question of how to power and resource the next wave of data centres is becoming increasingly urgent. These facilities, central to AI, cloud and sovereign capability, require guaranteed energy and sustainable water supplies. Without a coordinated approach, they risk adding pressure to a system already facing grid congestion and declining water reserves.
Yet these challenges also create an opportunity. With coordinated planning and shared infrastructure, data centres can act as catalysts for more sustainable systems, driving investment in renewable energy, recycled water and resilient utilities that benefit both industry and communities.
The Integrated Utility Precinct Model
Embedding data centres within shared precincts allows them to operate as part of broader energy and water systems, with interdependencies that enhance efficiency, reduce delivery risk and strengthen long-term resilience:
- Energy: Hybrid microgrids that combine renewables with gas-fired peaking plants can provide the firm baseload required for data centres, while exporting surplus electricity back to the grid during periods of peak demand. Battery storage systems further strengthen resilience and reduce grid stress.
- Water: Co-location with treatment infrastructure enables recycled water to be used for cooling, reducing reliance on potable supplies. Greywater can be returned to nearby communities, contributing to wider resource efficiency, while precinct-scale treatment plants can integrate stormwater harvesting and wastewater recycling. Desalination can also be incorporated as an additional safeguard during drought conditions.
- Circular economy and resource recovery: Integrated designs can support resource reuse, from capturing and re-directing waste heat for nearby housing, industry or agriculture, to embedding closed-loop approaches that reduce the overall environmental footprint.
- Community integration: Precinct planning allows for co-benefits such as EV charging, improved connectivity and shared infrastructure that directly supports surrounding residential and industrial areas.
- Resilience: Shared systems reduce duplication of infrastructure, lower costs and improve continuity during periods of stress or disruption.
Why Western Australia?
Western Australia has a track record of global leadership in energy exports. Applying similar foresight to domestic infrastructure could establish an early benchmark for data centre development. An integrated precinct model has the potential to:
- Guarantee reliable baseload for data centre operations
- Support grid stability during periods of peak demand
- Reuse and recycle water in one of the world’s driest regions
- Enhance sovereign capability in critical digital infrastructure
Perth combines both strong demand for digital infrastructure and acute resource pressures. The need to balance renewable growth, gas reliance and water scarcity places the state in a position where integrated solutions are not only desirable but necessary. Far from being a constraint, these dynamics create the opportunity for Western Australia to demonstrate how digital infrastructure can be aligned with broader energy and water security outcomes. As the traditional Australian hyperscale data centre markets of Sydney and Melbourne face intensifying land, power and water pressures, Western Australia is well placed to set the standard for the next generation of sustainable data centre development.
For more information on integrated utility data centre precincts in Western Australia, please contact Stuart Cassie, Director & APAC Data Centre Lead.