Data centers should support the transition to renewable energy to ensure priority under the new guidelines

Tech giants looking to build artificial intelligence data centers in Australia should create their own renewable energy infrastructure to avoid wasting domestic resources if they want to win government support under new investment policies.

Industry and Innovation Minister Tim Ayres will on Monday unveil a set of expectations for potential developers looking to build widespread AI infrastructure in Australia, as the government seeks to harness the economic and productivity benefits of the rapidly evolving technology.

Advocates warn that the massive energy and water consumption required to run data centers poses a risk to…