Subscribe to Newsletter

logo

  • Energy
  • Construction
  • Resources
  • Trending
  • Business Insight
  • Events
  • Magazine
  • Advertise
  • Contact
Home
  • Home
  • Energy
  • Construction
  • Resources
  • Trending
  • Business Insight
  • Events
  • Magazine
  • Advertise
  • Contact

AEMC proposes new grid standards to safeguard against data centre surges

13 Mar, 2026
Rest makes $1 billion investment in renewables and green data centres



The Australian Energy Market Commission (AEMC) has proposed new technical standards for large-scale data centres, aiming to bolster grid stability as the country’s digital infrastructure boom accelerates.

The draft rule responds to growing concerns that the rapid expansion of energy-intensive facilities, driven by artificial intelligence and cloud computing, could inadvertently trigger cascading outages if left unregulated.

Most modern data centres rely on inverter-based technology, similar to that used in solar farms and battery storage. However, evidence from abroad suggests these systems can be volatile.

In July 2024, a single fault in Virginia, US, saw 60 data centres simultaneously pull 1,500 megawatts from the grid, causing widespread instability. Similar incidents in Ireland and Texas have even led some regions to pause new connections entirely.

AEMC Chair Anna Collyer warned that data centres can no longer be viewed as passive loads.

“Data centres aren’t passive loads anymore; they’re active grid participants. When they fail to ride through faults, it has the potential to trigger cascading failures and blackouts,” Collyer said.

Under the new proposals, the threshold for what constitutes a large inverter-based load will rise from 5 MW to 30 MW. This ensures that stricter technical requirements are applied proportionately to the facilities most likely to impact power system security.

Secondly, data centres must remain connected during voltage or frequency disturbances rather than abruptly disconnecting. These standards are based on actual plant capabilities and grid needs.

To lower costs and speed up deployment, the AEMC aims to match standards used in Finland, Ireland, and Texas, allowing operators to use standardised equipment and engineering studies.

Network service providers and the Australian Energy Market Operator (AEMO) will receive clearer data on how these facilities respond to grid stress.

The proposed standards would help prevent billions lost in during electricity disturbances or emergency network upgrades.

“These proposed standards would help prevent that. They are designed to enable investment with certainty, not block it. Data centre operators would know exactly what’s required upfront, and network service providers would be able to apply technical connection standards consistently,” Collyer said.

Stakeholders have until May 7 to provide feedback on the draft, with a final determination by mid-2026. AEMO will publish interim guidelines in the coming months to assist the industry during the transition.

Share this story

  • Share on LinkedIn
  • Share on Twitter
  • Share on Facebook

Related Articles

Rest makes $1 billion investment in renewables and green data centres

IREN to build massive data centre in South Australia, backed by abundant renewable energy

Rest makes $1 billion investment in renewables and green data centres

Data centres told to underwrite renewables under new federal rules

Data Centres: Towards Net Zero

Comments

Leave a comment Cancel reply

You must be logged in to post a comment.

Breaking

  • Energy
  • Construction
  • Resources
23 Oct

Kimberley Communities Solar Saver delivers more than $240,000 in energy savings

21 Oct

Global battery emissions could double by 2050

19 Oct

Hazelwood battery expansion to support Gippsland clean energy transition

19 Oct

Atmos Renewables expands clean energy portfolio with BayWa r.e. projects 

16 Oct

Victoria gives green light to Southern Hemisphere’s largest wind farm

23 Oct

UNSW Health Translation Hub awarded highest sustainability rating

22 Oct

WA invests $670,000 to advance urban greening, protect endangered cockatoos

21 Oct

Australian Passivhaus certifications quadruple in four years

21 Oct

NSW finalists announced for Sustainable Cities Awards 2026

09 Oct

Western Australia allocates $5.1M in funding for greening projects across Perth and Peel

23 Oct

NeoSmelt, HILT CRC to advance Australian lower-emissions ironmaking

22 Oct

ARENA backs Australia’s largest thermal energy storage project at Rio Tinto alumina refinery

20 Oct

World’s first commercial ship-to-ship green ammonia refuelling completed in China

19 Oct

Australia approves West Peron Formation for Bonaparte carbon storage project

14 Oct

Carbonxt secures expanded US supply deal, boosting FY27 outlook

Online Magazine

    Current Cover
  • Login
  • Subscribe

Subscribe

Subscribe to Newsletter

Our Titles

  • Share on Newsletter
  • Share on LinkedIn
  • Share on Twitter
  • Share on Facebook
  • Home
  • Contact Us
  • Terms and Conditions
  • Privacy
© Sage Media Group 2026 All Rights Reserved.
×
Authorization
  • Registration
 This feature has been disabled
 This feature has been disabled until further notice, however you may still register
×
Registration
  • Autorization
Register
* All fields required