Australia is rapidly becoming a global hub for data centres, with 162 facilities already in operation and an additional 90 planned. This expansion represents an estimated investment of more than A$155bn (£80bn).
The surge in data centre development, driven by the increased demand for artificial intelligence (AI) infrastructure, has led to concerns regarding energy and water consumption. The Australian Energy Market Operator forecasts that data centre energy demands could triple across the country by 2030.
According to the Climate Council, this could lead to a 26% rise in power prices in New South Wales (NSW) by 2035 if significant new renewable generation and storage are not developed. Data centres also require substantial amounts of water for cooling, with some using up to 40 million litres daily. Sydney Water estimates that data centres could account for up to 25% of Sydney's drinking water by 2035.
NSW Treasurer Daniel Mookhey states that the investment boom in data centres is linked to a boom in renewable energy, with the private sector contributing significantly to the cost. However, energy and environmental experts argue that Australia may struggle to meet the substantial energy and water needs of these new facilities.