AEMC floats mandatory registration and ramp limits for large data centres

The Australian Energy Market Commission (AEMC) is weighing compulsory registration and new operating rules for big data centres and similar large power users, so the grid operator can see more of what they draw. A consultation paper went out on 12 November, responding to a rule change request lodged by the Australian Energy Market Operator (AEMO). Submissions close on 17 December 2026, and the AEMC plans a draft determination on 1 April 2027, depending on what stakeholders raise.

AEMO's request argues the National Electricity Rules leave it and network service providers without steady visibility of large inverter-based loads, and without a proper framework for handling fast swings in their demand. The category covers data centres and hydrogen electrolysers, and data centres can ramp up faster than conventional loads thanks to modular design. AEMO forecasts that data centre consumption will climb from around 5TWh to approximately 34TWh within a decade, taking its share of National Electricity Market operational demand from around 3 per cent to 13 per cent.

On registration, the commission is leaning towards adapting the current NEM framework instead of creating a permanent new participant class for large loads. Registration could oblige data centres to give AEMO information, including through the Projected Assessment of System Adequacy process, and make clearer how operational directions apply. The AEMC wants views on whether a 30MW threshold suits registration and whether existing facilities should be caught as well as new connections. It does not think scheduled participation should be compulsory yet, citing varied operating models and possible costs for facilities that deliver critical computing services. The Voluntarily Scheduled Resources framework has not started, so one interim idea is a temporary participant category letting AEMO issue directions straight to facility operators, rather than via their electricity retailer.

The second reform area covers technical requirements. Under a minimum standard, large loads would feed real-time SCADA telemetry to AEMO, covering active power and, at transmission-connected sites, reactive power. A fuller standard would add two-way communications and remote control of active-power limits and ramp rates. The commission also proposes a floor on how quickly loads may alter demand, at ±40MW per minute on the mainland NEM and ±10MW per minute in Tasmania, with quicker rates negotiable if operators show power system security is protected. The AEMC calls those numbers initial proposals, and says workload management, power capping, rack-level controls and energy storage could help data centres shape their demand.

The same day, the AEMC issued a final rule defining a large inverter-based load as one with a combined nameplate rating of 30MW or more, on both transmission and distribution networks. Such loads must stay connected through specified voltage and frequency disturbances, and a new instability-monitoring standard applies. The AEMC said interactions between large power-electronic loads and the grid can sometimes feed cascading disconnections and major load loss. It noted that data centre UPS systems can shift to backup power during a disturbance, though the resulting disconnection from the grid can add to instability. The rule took effect on 12 November, with a six-month grace period for certain connection applications already at an advanced stage.

The work forms part of a broader program across the AEMC, AEMO and the Australian Energy Regulator, spanning data centre contracting obligations, network augmentation costs, connection processes and operational visibility.