SA Power Networks supports the State Government's approach to adopt an organised planning framework for attracting data centres to South Australia.

As South Australia’s electricity distributor, SA Power Networks is dedicated to supporting economic growth and recognises the potential of data centres and artificial intelligence to contribute to that.

SA Power Networks CEO Andrew Bills said with South Australia’s world-leading renewable energy, it should be attractive and low cost for AI data centres to set up here with potential benefits to a well-located data centre utilising existing network infrastructure.

“Where there is a lot of network capacity. There is huge potential in areas where traditional industry no longer operates,” Mr Bills said.

“If data centres can be directed to locations where there is spare network capacity, more energy can be delivered through the same infrastructure, leading to lower unit costs of energy for all customers. Large loads can also assist in soaking up excess rooftop solar generation and improve system security.”

SA Power Networks commends the Government on its focus of early coordination of the key infrastructure supporting these sites, noting the onboarding of essential services at the earliest planning stage is key to the best outcomes.

Globally, the trend has been for data centres to provide or underwrite their own renewable energy generation. Many developers also choose to establish battery storage systems to minimise their impact on the power system.

In South Australia, large customers who wish to connect to SA Power Networks’ distribution network must carry the cost of establishing any new infrastructure required.

“SA Power Networks provides an essential service fundamental to the state’s economic potential,” Mr Bills said.

“With the right planning, we can grow and adapt just as the state does to help South Australia take full advantage of the opportunity to get in on the ground floor with these future growth industries.”

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