Australia’s data centre boom could be dire, unless we bank on renewables

Energy is also going to be more in demand, with a three times projected growth by 2030. This means that Australia-based data centres will be using the equivalent energy of all Victorian homes.

The water demand is also set to increase by three times by 2030. The report said that water utilites have been directly contacted requesting single site connection to use 40 million litres a day, the same as around 16 Olympic swimming pools.

Finally, climate pollution from the main energy grid is expected to increase 14 per cent by 2035 if not dealt with prior.

“Australia is navigating a dual boom: a critical switch to a clean energy system and a historic surge in digital infrastructure. To protect the Australia of tomorrow, our governments must act today,” said Climate Council CEO Amanda McKenzie.

“Data centres are hungry for energy. Governments must proactively manage the surging demand, making sure that they are powered with clean renewable power. If they don’t, there is a big risk that they will push up pollution from coal and gas at a time when we’re already living through more frequent floods, and ferocious fires.

Mckenzie said that low-cost renewables paired with data centres are key in protecting the wallets of the Australian people.

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“There is an opportunity to align the expansion in data centres with climate action, and the time for government action is now,” she said.

Similarly, energy expert and climate councillor Associate Professor Joel Gilmore said the decisions made on data centres and renewable energy now will shape the future, both in the long and short term.

“How we manage this industry will shape our energy system – and climate – for decades to come. Done poorly, data centres threaten to derail our switch to clean energy – which will push up pollution and power prices. With government intervention and enforceable requirements, data centres can play a role in our clean energy shift, support grid reliability, and avoid unnecessary power price rises,” he said.

“Data centres are like a giant snowball rolling down the mountain. If they don’t bring new, low-cost renewables and storage with them and pay for the energy and water infrastructure upgrades they need, they’ll be dumping massive costs onto households and businesses.

“These are large, well-resourced corporations who can afford to pay for the clean energy they need. Australian households should not be subsidising big American tech companies – our governments must act swiftly to insist that these companies come to the party with additional renewable energy and storage.”