Pressures on energy and water grids by burgeoning global data centres could be eased by appropriately located precincts, a new TBH report has found.
The report, ‘Powering Data Centres: Are Integrated Utility Precincts the Answer?’, proposes an integrated utility precinct model, where data centres are planned as part of shared energy, water, and infrastructure systems rather than isolated facilities.
This approach aims to improve resilience, reduce risk, and unlock economic and community benefits.
“The next phase of global data centre growth will be shaped by how effectively facilities integrate with surrounding energy, water, and community systems,” said Rob Hammond, Director and Global Data Centre Lead at TBH.
“Integrated utility precincts provide a pathway to move beyond incremental, site-by-site solutions and deliver infrastructure that is efficient, resilient, and socially sustainable.”
In the Northern Territory, SunCable’s Australia-Asia PowerLink (AAPowerLink) proposes a multi-gigawatt solar and storage precinct north of Tennant Creek, designed to supply large industrial loads alongside potential hyperscale data centre developments. According to the report, its configuration – combining co-located generation, long-duration storage and transmission infrastructure – would provide a practical model for supporting digital-infrastructure growth in areas where traditional network extensions are not viable.
The report identifies the model as a strategic response to AI-driven demand growth, tightening utility constraints, and rising decarbonisation expectations. Shared infrastructure can reduce duplication of assets, lower costs, and enable access to renewable energy and recycled water at scale.
“Data centres can either be perceived as competitors for scarce resources or as catalysts for more resilient infrastructure systems,” said Stuart Cassie, Director and APAC Data Centre Lead at TBH.
“Integrated utility precincts shift the narrative toward shared value and long-term system efficiency.”
To download the full report, click here.
