EHS in the Data Centre Sector: Beyond Energy
The Full EHS Footprint
When data centres are discussed in the context of environmental performance, the conversation almost always focuses on water and energy — power consumption, carbon emissions, renewable sourcing, and NABERS ratings. Energy is undeniably the dominant environmental issue. But it is not the only one, and the current wave of regulatory attention on data centres is raising a broader range of EHS considerations that developers, operators and their advisers need to understand.
Australia's data centre sector is projected to consume approximately 6 per cent of grid-supplied electricity by 2030, a figure that will only grow as AI workloads intensify. But alongside energy, data centres generate a complex EHS profile that spans water, hazardous materials, noise, stormwater and community amenity. As planning and approvals processes become more rigorous, each of these dimensions is under greater scrutiny.
Water: The Emerging Priority
Cooling is the most water-intensive operation in a data centre. Air-side cooling, evaporative cooling towers and liquid cooling systems all draw on water supplies, and large facilities can consume millions of cubic metres per year. This has already created significant tension with municipal water utilities in Melbourne and Sydney and is driving the federal and state regulatory responses now underway.
The practical EHS challenge is that data centre water management is a relatively immature discipline compared to energy management. Few operators have robust water accounting and reporting frameworks in place. The emergence of the Water Usage Effectiveness metric (analogous to Power Usage Effectiveness in the energy context) as a regulatory benchmark will require operators to instrument, monitor and report water consumption with the same rigour currently applied to energy. The water sector has called for NABERS to expand its data centre tools to water, which would provide a consistent national framework for measurement and benchmarking.
Hazardous Materials: Refrigerants, Fuels and Batteries
Data centres house significant quantities of hazardous materials that require careful EHS management. The most significant categories are:
- Refrigerants: Cooling systems use refrigerant gases, some of which have high global warming potential. The ongoing transition from legacy HFCs to lower-GWP alternatives (including natural refrigerants and newer synthetic options) creates both compliance obligations and opportunities for operators.
- Diesel fuel: Large data centres maintain substantial diesel generator capacity for backup power, often weeks of fuel storage for critical facilities. This creates obligations under hazardous materials storage regulations, spill prevention requirements, and in some jurisdictions, specific fuel storage licence conditions.
- Batteries: Uninterruptible power supply (UPS) systems use large battery banks, typically lithium-ion or lead-acid. Both types present fire risk and require specific storage, ventilation and emergency response planning. Lithium-ion in particular has been the subject of growing regulatory attention given its thermal runaway risk.
The management of these materials requires not only compliance with the relevant storage and handling regulations, but integration into emergency response plans, insurance documentation, and, increasingly, approvals conditions.
Noise
Data centres are large, continuously operating facilities with significant mechanical plant, cooling towers, chillers, generators and HVAC systems. Noise from these sources can be a significant amenity issue, particularly for data centres located at the urban-industrial fringe where residential encroachment is common. Noise impact assessment is a standard component of EHS approvals for new facilities, but the management of cumulative noise from multiple data centre facilities on adjacent sites is an emerging issue in some locations.
Generator testing is a specific noise management challenge. Emergency generators must be tested regularly to ensure reliability, but diesel generator operation at full load generates significant noise and emissions. Balancing testing requirements with community amenity expectations requires careful scheduling, monitoring and, in some cases, acoustic mitigation.
Stormwater and Site Drainage
Large data centre footprints, with extensive impervious surfaces, create stormwater management obligations. The risk of contaminated stormwater discharge (from fuel storage areas, chemical storage and transformer areas) requires appropriate containment, drainage and treatment infrastructure. These requirements need to be integrated into site design from the outset, not retrofitted after construction.
Community Amenity and Approvals Strategy
The approvals environment for large data centres is becoming more complex. Land use conflicts (particularly in Western Sydney, where data centres compete directly with housing and employment land) have featured prominently in the NSW inquiry. Local councils and community groups are paying closer attention, and approvals authorities are imposing more detailed conditions covering noise, visual amenity, light spill, traffic and operational hours.
Proposals that arrive at the assessment stage without having proactively addressed community amenity issues are increasingly at risk of objections, delays and onerous conditions. Early EHS assessment (identifying and mitigating potential community impacts before lodgement) is the most effective strategy.
Some submissions to the NSW inquiry have proposed that large data centres (above 30 MW) be required to obtain ISO 14001 certification, providing a structured framework for identifying and managing all key environmental aspects across their lifecycle. Whether or not this becomes a mandatory requirement, it represents the direction of travel: data centres will increasingly be expected to demonstrate systematic, verified environmental management — not simply compliance with individual permit conditions.
PJRA's Role in the Data Centre Sector
PJRA assists data centre developers, operators and investors with the full range of EHS considerations, from initial site selection and environmental impact assessment through to operational management systems, regulatory compliance and community engagement. Our team brings cross-disciplinary capability in noise, water, hazardous materials, stormwater and approvals strategy, helping clients navigate a rapidly evolving regulatory environment with confidence.
Whether you are developing a new facility, acquiring an existing data centre, or reviewing the EHS performance of an operating portfolio, our team is available to assist.