DATA CENTRES: THE THREE NON-NEGOTIABLES TO PROTECT OUR CLIMATE AND POWER BILLS
Right now, a surge in energy and water demand from data centres is underway across Australia: data centre electricity demand is set to triple to 6% of electricity in our main grid by 2030. In Tasmania the forecast is even more concerning, with energy use predicted to increase by 400% by 2030.
The Climate Council's latest report on data centres shows that without government intervention to match demand with renewables and storage, the industry will push up power prices for homes and businesses and worsen climate pollution and risks.
In late July, Australian Energy and Climate Change Ministers - with the exception of the Northern Territory and Queensland - pledged to back in the Commonwealth’s commitment to legislate national standards to ensure that new large-scale data centres underwrite new renewable power supply, and that consumers face no price impacts from data centres entering the grids.
The three key requirements to protect our climate and power bills:
|
Requirement |
Description |
|
100% of demand matched with additional renewables and storage |
All new data centre energy demand must be met with new renewable energy generation and storage – not capacity that already exists or would have been built without the industry’s demand and support. This must be demonstrated through direct procurement and investment, rather than reliance on cheap renewable energy certificates (e.g. LGCs) which do not represent genuine additions to power supply. |
|
New renewable capacity is built within three years |
New renewable and storage capacity must be built within three years of a data centre commencing operations – not a long or unlimited window, which would push up pollution and power prices. Data centres must not be permitted to rely on off-grid fossil fuel generation while they ramp up to 100% additional renewables. |
|
Applied to every new data centre, everywhere in Australia |
With at least 90 new data centres already proposed across Australia, requirements must be applied to all future data centres, including those already under assessment. New rules must apply to every jurisdiction, including Queensland and the Northern Territory, where proposals like Beetaloo Energy’s 2 gigawatt gas-powered data centre present a major risk to both our climate and water resources, and threaten to derail national climate targets. |
|
Tasmania - state of play |
|
|
Number of data centres |
7 total operational and proposed data centres (Data Center Map). |
|
Energy use |
20 GWh currently, forecast to grow more than 4x to 90 GWh by 2030 (AEMO). |
|
Water use |
Unknown |
|
Impact on power prices |
According to modelling by Baringa and CEFC, if data centres are not matched with renewables and storage, Tasmania could could see a:
Even states in the NEM with relatively low levels of data centre growth expected – like Tasmania and South Australia – will be impacted, as their energy will be exported to other states to meet demand. |
|
Key projects |
Firmus Technologies has plans to build three large AI facilities in Tasmania, including the 84 MW AI factory in Launceston which is already under construction. The three facilities combined would have a total maximum capacity of more than 400 MW. |
|
Policy |
The Tasmanian Government welcomes and is actively working to attract new data centre investment. |
Quotes attributable to Climate Council CEO Amanda McKenzie:
“In the US unchecked data centre growth has led to massive spikes in power prices and damage to public water resources.
“Each Australian state and territory must come to the table and put the interests of their communities ahead of the profits of tech giants and fossil fuel corporations.
“Putting the community first means requiring data centres to build new renewable energy and protect our water resources.
“Accelerating the roll-out of proven renewable energy is the only way to keep prices as low as possible, ensure grid stability, and slash climate pollution to better protect our communities, economy and environment from worsening climate disasters."
Recent YouGov polling commissioned by the Climate Council showed:
● 67% of Australians agree data centres risk driving up power bills and putting the grid under strain.
● 82% think data centres should be required to pay for the new renewable energy and storage needed to power them.
● 69% support strict, mandatory energy and water standards for new data centres.
● Fewer Australians (49%) are convinced that the data centre industry will boost Australia's economy.
For more details and interviews, contact: Climate Council Media Advisor Warwick Green on 0439 647 144 or [email protected], or the Climate Council’s general media line on 0485 863 063.
About us:
The Climate Council is an independent, community-funded organisation. We provide evidence-based information on climate change impacts and solutions to journalists, policymakers, and the wider Australian community.
For further information, go to: climatecouncil.org.au
Or follow us on social media: LinkedIn, Facebook, Threads
