South Australia's government has decided to court AI data centers, and is writing a law to speed them up. On June 23, 2026 Premier Peter Malinauskas released a Data Centre Strategy, with the government estimating $850 billion of investment in the sector over the next few years, InDaily reported. "We need data centres in Australia," Malinauskas said. The plan includes a Data Centre and AI Infrastructure Act to streamline approvals, with the Coordinator-General taking over decision-making and data centers designated essential infrastructure through amendments to the Planning, Development and Infrastructure Act. Applicants would need advice from SA Water that there is enough water, and a certificate from the Technical Regulator that the project complies with the state's power system requirements. The ABC reported that the government said the act would ensure energy use is managed "with no negative impact on consumer bills". It also floated its planned $5 billion Northern Water desalination pipeline to BHP's Olympic Dam as a possible water source for data centers.
The anchor project is at Bundey in the Mid North. IREN, the former bitcoin miner now building AI data centers, announced an 800MW campus beside ElectraNet's Bundey substation, which IREN puts about 125km north-east of Adelaide. The company said its transmission connection agreement secures four 330kV feeder exits that can support up to 800MW without network upgrades, and that first energisation is expected from 2028. It promised more than 500 construction jobs and over 200 ongoing roles. Media reports put the cost at around $10 billion, RenewEconomy said, making it more than twice the size of any existing data center in Australia. RenewEconomy reported that the substation already serves Neoen's Goyder renewable energy park and is the South Australian end of Project EnergyConnect, the new line to New South Wales. It said the state may have to build more generation to keep its 100% 'net' renewables target once the load arrives. The Regional Council of Goyder's chief executive, David Stevenson, told Greater SA that the council had received only "a very high-level briefing", and that how likely the project is to proceed "is yet to crystallise".
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Water and cost are the objections. The ABC reported that the Bundey proposal had raised concerns among residents about water use and consultation. "In a dry year, does a data centre come first or a farmer?" asked Opposition spokesperson Ben Hood. Greens leader Robert Simms said the government "shouldn't be rolling out the red carpet for data centres, it should be slamming on the brakes". The federal MP for Grey, Tom Venning, told InDaily that "in the driest state, in the driest continent, we cannot afford to be using our precious resource on data centres". He said the permit must hold IREN to its promised closed-loop cooling and complained that such companies may not pay council rates. Malinauskas said commentary on data center water use was "outdated and, in some cases, exaggerated". Belinda Dennett of the industry body Data Centres Australia said Australian data centers "pay their own way" under a user-pays power system.
Other proposals are following. InDaily reported that Coorong District Council's acting mayor, Jonathan Pietzsch, said there was "concern and fear from locals developing in a vacuum" about a data center proposed by Firmus Technologies at Tailem Bend. Malinauskas promised "very substantial" consultation, comparing the worries to early concerns about wind farm noise.
What happens next: the Data Centre and AI Infrastructure Act has still to be introduced and passed, and the Greens say they will scrutinise it closely. IREN's Bundey campus needs its approvals before its first stage is energised, targeted for 2028.
Projects not tied to an area
Sites whose records name no county. Everything else is on the pages listed above.
South Australia3
| Project | Company | Status | Power | |
|---|---|---|---|---|
| IREN Bundey (South Australia) | IREN | Proposed | 800 MW | |
| NEXTDC A1 Adelaide | NEXTDC | 5 MW | Source off site ↗ | |
| Equinix Adelaide Center (AE1)Adelaide SA | Equinix | Not reported | Source off site ↗ |
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