La Trobe University will lead a major national project aimed at optimising energy use and emissions of Australia’s data centres using next‑generation quantum and artificial intelligence technologies.
Funded with a $1.1 million grant under the Federal Government’s National Critical Technologies Challenge Program (CTCP) and announced by the Federal Member for Jagajaga Kate Thwaites MP, the project brings together La Trobe researchers with leading industry and university partners to develop and deploy a fully functioning prototype within one of Australia’s major data centre facilities.
Professor Damminda Alahakoon, project leader and Director of La Trobe's Centre for Data Analytics and Cognition, said data centres were a critical backbone of Australia’s digital economy, and their rapid expansion – driven by cloud computing and artificial intelligence – had already delivered sustainability gains, moving operations out of inefficient office buildings into specialised facilities.
The widespread adoption of AI would take data centres into their next phase as AI factories, supporting digital systems in healthcare, productivity, research, national security and productivity.
Australia is a leading destination for data centre investment in the Indo-Pacific. The Federal Government released its National AI Plan promising smart infrastructure in December last year and the Victorian Government released its own AI Mission Statement and Sustainable Data Centre Action Plan this year.
La Trobe Vice-Chancellor Professor Theo Farrell said the University unveiled a bold ambition in 2024 to transform research, education, student support and business operations by applying an "AI-first" approach.
A key part of this work was helping to set industry standards for responsible use of AI in discovery, innovation, commercialisation and sustainability.
“La Trobe is committed to tackling nationally significant challenges. What makes this project particularly powerful is its focus on real‑world deployment,” Professor Farrell said.
“By moving from simulation to a live operational environment, La Trobe University is ensuring that cutting‑edge quantum and AI research can be tested, validated and adopted by industry.”
Under the CTCP grant, La Trobe researchers will lead the development of a sophisticated hybrid optimisation framework that combines quantum‑inspired algorithms, quantum machine learning and advanced classical optimisation to manage heating, ventilation and cooling systems more efficiently.
Building on a successful CTCP-funded feasibility study, the project will take a pioneering step to develop a next-generation energy management prototype, built upon novel quantum optimisation algorithms, complementary machine learning, quantum-inspired and classical optimisation techniques.
The system will first be tested in a high‑fidelity “digital twin,” before being deployed within a physically isolated operational testbed provided by leading Australian data centre operator NEXTDC.
The project is a collaboration between La Trobe University and The University of Western Australia’s Centre for Quantum Information, Simulation and Algorithms (QUISA), led by Professor Jingbo Wang, with industry partners including NEXTDC, Fujitsu and AQ Intelligence.
Together, the consortium brings deep expertise in quantum computing, artificial intelligence, data centre operations and commercialisation. Testing is expected to generate verifiable reductions in energy consumption and carbon emissions, while strengthening Australia’s sovereign capability in quantum technologies and energy optimisation.
Craig Scroggie, Chief Executive Officer of NEXTDC, said the project moved quantum and advanced AI optimisation from the lab into live national infrastructure.
“By applying quantum-inspired techniques to real-time energy and cooling systems inside an operational data centre, we are targeting improvements in power utilisation at scale,” he said.
“As AI accelerates, the challenge is not simply producing more energy, but orchestrating it intelligently. Delivering this capability in an operational facility strengthens Australia’s sovereign quantum and digital infrastructure capability and positions us to lead research in this field of next generation sustainable, high-performance AI computing systems.”
Peter Grassi, Chief Executive Officer of Fujitsu in Oceania, said the future of AI depends on its ability to run sustainably.
“With cooling systems accounting for up to 30 per cent of a data centre’s energy use, Fujitsu is actively working to address this challenge. Fujitsu's quantum simulators and our Digital Annealer, a quantum-inspired technology, are designed to solve complex, real-world problems like improving the efficiency of data centre cooling systems. It will help researchers to find smarter, more efficient ways to manage critical infrastructure.
“These capabilities support our global quantum ambitions, including building a 10,000+ qubit quantum computer, turning our deep expertise into practical solutions that bolster Australia's sovereign advantage."
Professor Wang, Director of QUISA, said the project was an exciting opportunity to demonstrate how quantum-inspired optimisation could deliver real, measurable efficiency gains in operational data centres.
“By combining advanced quantum and AI techniques with industry-scale testing, we aim to show how emerging technologies can directly reduce both energy consumption and carbon emissions.”
AQ Intelligence Director Guy Perkins said: "As a company focused on commercialising technology to make data centres far more energy and water efficient, AQI is excited to be part of this consortium and to place Australia at the forefront of sustainable data centres globally".
The project directly supports Australia’s National Quantum Strategy by accelerating the translation of world‑leading research into practical, industry‑ready solutions and by building skills in Australia’s growing quantum workforce.
Beyond data centres, the optimisation framework developed at La Trobe University and The University of Western Australia has potential applications across industries such as manufacturing, logistics, smart buildings and renewable energy systems.
“This project strengthens Australia’s sovereign quantum capability, builds the skills and expertise needed for the next generation of researchers and innovators, and will guide the operation of sustainable AI data centres.” Professor Farrell said.
Contact details:
Media enquiries: Robyn Grace – r.grace@latrobe.edu.au, 0420 826 595