Power-hungry data centres scrambling to find enough electricity to meet demand
Australia's data centres may consume up to 15% of the national grid by 2030, driven by cloud computing and AI, prompting a need for renewable energy and immediate action to ensure grid stability.
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Australia's data centres are facing a significant challenge in meeting their growing electricity demands, which could rise to 8% of the national grid by 2030, according to energy experts. Currently, these facilities consume about 5% of the grid's electricity, with projections suggesting that this could escalate to as much as 15% if the trend continues. The surge in demand is driven by the rapid expansion of cloud computing and artificial intelligence, with data centres becoming essential for various sectors, including healthcare and finance.
As the country transitions to electrification, the existing power grid is already under strain, exacerbated by increased household electricity use and the rise of electric vehicles. Experts warn that without additional energy supply, rising demand from data centres could lead to higher electricity prices and increased greenhouse gas emissions.
To address these challenges, data centre operators are exploring renewable energy sources and considering regional locations to better align with renewable generation capabilities. The Australian Energy Market Operator anticipates that overall electricity consumption will nearly double by 2050, highlighting the urgency of developing new energy capacity. Energy Minister Chris Bowen noted a strong pipeline of renewable projects, indicating potential solutions to meet the anticipated demand. However, experts emphasize the need for immediate action to ensure the energy transition can accommodate the burgeoning data centre sector without compromising grid stability.
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