Australian Data Centres Power Consumption Projected to Skyrocket
Australian data centres will draw 13% of the national electricity market by 2035-36, up from 3% today, according to the grid operator AEMO. That represents almost a sevenfold increase in power consumption within a decade.
Key Takeaways:
- Australian data centres are expected to consume 34 terawatt hours of electricity annually by 2035-36.
- This surge comes as 13 gigawatts of coal-fired plants retire and nearly 2 gigawatts of gas generation shuts down.
- The flat, consistent energy demand from data centres presents challenges for the grid operator as it navigates supply and demand throughout the day and across seasons.
- Despite these challenges, AEMO reports a record year for new clean energy additions in 2025-26, exceeding 9 gigawatts.
- However, a significant amount of new generation and storage capacity will be crucial "to maintain reliability" beyond 2030.
- Over $108 billion is estimated to be invested in Australia’s data centre buildout by 2030.