Datacentres demand huge amounts of electricity. Could they derail Australia’s net zero ambitions?

The Guardian
The Guardian
1w ago • 12 views
Experts warn that the rapid expansion of datacentres in Australia could hinder the country's energy transition and climate targets. Their increasing electricity demand may outpace renewable energy growth.
Datacentres demand huge amounts of electricity. Could they derail Australia’s net zero ambitions?
A What happened
Australia's datacentre industry is expanding rapidly, with projections indicating that electricity demand could triple in five years. Currently, datacentres account for about 2% of the National Grid's electricity consumption, but this is expected to rise significantly. Experts warn that this growth could jeopardize Australia's climate targets, as datacentres may consume more energy than electric vehicles by 2030. The International Energy Agency reports that datacentre energy demand is growing four times faster than other sectors. Concerns have been raised about the reliance on fossil fuels to meet this demand, as datacentres often operate continuously, increasing pressure on the power grid. The Australian government acknowledges the need for new energy technologies to support this growth, but experts caution that without adequate renewable energy expansion, emissions targets may be compromised.

Key insights

  • 1

    Rapid Datacentre Growth: Datacentre electricity demand in Australia could triple by 2030.

  • 2

    Impact on Climate Goals: Increased energy consumption may hinder Australia's renewable energy transition.

  • 3

    Reliance on Fossil Fuels: Datacentres could increase dependence on coal and gas generation.

  • 4

    Need for Renewable Investment: Government plans to ensure datacentre growth aligns with renewable energy investments.

Takeaways

The unchecked growth of datacentres poses significant challenges to Australia's climate ambitions. Without a strategic approach to energy consumption and renewable investment, achieving net-zero targets may become increasingly difficult.

Topics

Climate & Environment Climate Change Energy