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Data Centres: Balancing Resource Demand Growth with Sustainability

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Data Centres in Australia: Already a Significant Proportion of Grid Demand

Downtown building with digital overlayWith the continued investment into cloud computing services and Artificial Intelligence, data centres around the world are enjoying a unique and unprecedented rate of growth that will continue to charge ahead this year. Australia is no stranger to this, home to more than 250 data centres mainly sitting in New South Wales and Victoria, consuming an estimated two percent of the National Electricity Market (NEM)’s grid-supplied electricity according to the Australian Energy Market Operator (AEMO)’s commissioned report by Oxford Economics Australia (OEA), and the country is emerging as a regional hotspot. -

Growth in Capacity Brings Additional Grid Demand… and Supply

This is set to drive a surge in electricity demand – AEMO’s OEA report shows that Australian data centre electricity could triple by 2030 and consume six percent of the NEM’s grid-supplied electricity. This grows to 12 percent by 2050, with the vast majority of consumption in Melbourne and Sydney. In order to limit their impact on an already-shaky grid transition, data centres will underpin renewable energy and storage project development, focus on efficient designs and technology, and aim to be sustainable and circular in their operations. -

But Energy is Not the Only Challenge

Data centres are practiced in navigating the challenges of sustainable energy consumption, but challenges exist beyond energy. Data centres are most typically significant consumers of water. While Australia's largest water utility Sydney Water estimates current use by data centres in their service area to less than one percent, this is forecast to grow to 25 percent by 2035. This expected exponential growth in water consumption is in stark contrast to water security; the United Nation has formally announced the beginning of an era of ‘global water bankruptcy’. There are solutions for this challenge as well, and we expect data centres to invest in sustainable energy and water infrastructure to avoid pitfalls, maintain their growth momentum, and meet their sustainability objectives.

Explore how your data centre can reduce its energy and water footprint while scaling responsibly. Reach out to our experts Michael Cox and Jessica Wilson to identify opportunities for strategic improvement.