Data centers built in the Australian state of New South Wales (NSW) will be required to source at least 40 percent of their energy requirements from wind energy under a new plan unveiled by the state government.

According to the NSW government, data centers that meet these requirements will be given an expedited route to market, with state representatives promising to assess data center applications within 75 days.

NSW Treasurer Daniel Mookhey said that the plans had been in the works for more than a year, and that data center developers would also be required to foot the bill for the new clean energy under the new rules.

Under the framework, data center developers would have to show that they were entering into Power Purchase Agreements (PPAs) with renewable energy providers. Developers will also be required to adhere to environmental and efficiency standards, impose no net cost to consumers, and fund additional supply of water and energy.

“We are launching a nation-leading policy to make sure that rising data center investment is matched with increased investment in renewable energy and water infrastructure,” Mookhey said.

According to Mookhey, those data centers that fail to meet the standards could see their projects rejected.

“Those data center builders that choose not to comply with these guidelines will have to take the risk that their projects are going to get refused,” he said.

“We’re pretty clear that these are our expectations … any data center builder that chooses not to comply with these standards will find themselves almost alone.”

The framework will also include a water pricing review to be conducted by the Independent Pricing and Regulatory Tribunal (IPART). The review would aim to “ensure water users on the network are protected, and the impacts of drought and water scarcity are appropriately managed.”

The NSW government will also establish a new ‘Office of AI’ to coordinate government investment in digital and AI assets to “ensure AI supports workers, strengthens capacity and is implemented responsibly across the public sector.”

According to the NSW government, 90 data center facilities are currently operating in the state, most clustered around the Sydney metropolitan area. Major operators in the region include AirTrunk, AWS, Equinix, and NextDC.