These high-tech, high-energy facilities face potentially catastrophic fire risks, with many being located in or near community precincts.
The threat stems from the concentration of major electrical equipment and power systems, while cooling-system failures can create additional hazards. Site owners are, therefore, being urged to consider fire-protection requirements as the data-centre rollout accelerates. Australia already has 162 data centres, with a further 90 in the planning stages.
Globally, real estate services giant JLL forecasts the sector will enter an infrastructure investment “super cycle”, requiring up to US$3 trillion in spending by 2030. Almost 100 gigawatts of new data-centre capacity is expected to be added between 2026 and 2030, potentially doubling global capacity.
For operators, investors and customers, preventing and containing fires is critical for three reasons: protecting people working at facilities and in surrounding areas; safeguarding buildings, equipment and data; and preventing the business interruption and reputational damage that can follow a major outage.
In the firing line
While major data centre fires remain relatively uncommon, several incidents in recent years demonstrate how quickly a blaze can become a significant business-interruption event.
In May 2025, a fire at a Digital Realty data centre in Oregon used by Elon Musk’s X was traced to an electrical or mechanical failure in a UPS power cabinet. One cabinet was destroyed and two were damaged, with losses estimated at about US$260,000. Other fires have affected Digital Realty facilities in El Segundo, California, and Singapore.
In 2022, a fire at a South Korean technology facility operated by Kakao disrupted services across its widely used digital ecosystem. In 2024, a fire affecting an Alibaba Cloud facility in Singapore reportedly caused significant service interruptions.
Closer to home, an electrical fire in 2023 affected the cooling system at the South Australian Government’s primary data centre, disrupting government services and access to electronic medical records across several hospitals, including the Royal Adelaide, Lyell McEwin and Modbury. In 2017, a fire at a Port Melbourne data centre facility caused a partial shutdown of UniSuper’s systems.
Understanding the risks
Data centres present significant fire hazards because they concentrate enormous electrical loads and heat generating equipment within relatively confined spaces.
Potential ignition sources include electrical faults, overheating equipment, failures involving cooling systems, cable pathways and human error. UPS systems, which protect data centres and telecommunications equipment from power interruptions, can also represent a significant fire risk because of the electrical infrastructure required.
The consequences can extend well beyond physical damage. Data centres underpin cloud services, communications, banking, government systems and AI applications, meaning an outage can affect thousands or even millions of users. Operators may also face contractual penalties, lost revenue and reputational damage. In a severe case, prolonged disruption could require extensive rebuilding or even result in a facility being decommissioned.
As a result, prevention and rapid suppression need to be fundamental elements of data-centre design rather than an afterthought.
How to protect sites
Fire detection, compartmentation and appropriately designed suppression systems can help contain an incident before it escalates into a major business interruption event.
For critical rooms containing sensitive electronic equipment, total-flood gaseous fire-suppression systems can provide an important layer of protection. These systems can incorporate a “double-knock” detection strategy, in which two independent detection signals, such as aspirating smoke detection and conventional smoke detection, are required before the suppression system is activated.
Once confirmed, the system can discharge a clean agent or inert gas through strategically positioned nozzles into the protected enclosure. By suppressing a fire without introducing water, these systems can limit secondary damage to sensitive servers and electrical equipment.
Rapid suppression can also reduce the scale of repairs. Rather than allowing a fire to spread through an electrical cabinet, equipment room or data hall, early intervention may confine the damage to individual components or cabinets.
Importantly, gaseous suppression systems must be appropriately designed, installed and maintained to meet applicable Australian standards, including AS 4214 for gaseous fire-extinguishing systems, AS 1670.5 for fire detection and warning systems, and AS 1851 for routine servicing of fire-protection equipment. Relevant international certification and insurer requirements may also apply.
Time to act
As the AI boom drives unprecedented investment in data centres, the industry’s ability to deliver uninterrupted computing capacity will be as important as its ability to build quickly.
Robust fire prevention, detection and suppression are therefore not simply about protecting buildings. They are about protecting the digital infrastructure and the businesses, governments and communities – that increasingly depend on them.
Delta Fire Australasia specialises in the design and installation of fire suppression systems for industrial sites such as data centres. Reach out for assistance.
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