The industry body for data centre proponents says its members are battling community hesitancy and policy uncertainty.
It comes amid calls by minor parties for SA to halt approvals for new centres.
The state government is preparing legislation to regulate the industry.
The peak body representing data centres in Australia say its members are still grappling with "getting community consultation right" after several AI companies have either dumped or paused their plans for building centres across the country.
South Australia has today seen the first sign of data centre development in retreat, with Quantum DC announcing it will pause plans to build a 1200-megawatt AI data centre in Tungkillo, in the Adelaide Hills, following deep frustration, anger and protests from the surrounding community.
In New South Wales, another AI data centre proposed for Sydney's south, on the Cooks River, was scrapped over the weekend, the latest in a series of proposed NSW data centres to be dumped following community opposition.
Peak body Data Centres Australia does not represent Quantum DC.
Speaking broadly, its CEO Belinda Dennett said the challenge with community engagement was choosing the right time.
"Communities want early engagement, but they also want detailed answers, so there is a bit of a trade-off.
"Often, early engagement means you don't have all those answers around design plans, around energy…
