Australia’s Data Centre Boom Raises Energy and Water Concerns

Australia is rapidly expanding its data-centre infrastructure, but residents and experts are questioning the environmental cost.

People in Sydney’s Lane Cove suburb are concerned about plans for four new data centres. One existing facility is about 350m from a resident’s home, while another four are planned at a local industrial park. Residents have described constant humming and high-pitched noise.

Australia has 162 data centres, with plans for 90 more and more than A$155bn in proposed investment. A planned facility in western Sydney would use one gigawatt and is expected to become the country’s largest single energy user. Another site in Marsden Park, described as the Southern Hemisphere’s biggest data centre, is under construction 100m from a local community.

Supporters say the facilities can attract investment, create jobs and help Australia develop its own artificial intelligence companies. Australia has about 13.6 million AI users each month, making it the sixth most active market globally.

Energy and environmental experts warn that new facilities could strain water supplies and the power grid. The Australian Energy Market Operator says data-centre energy demand could triple nationwide by 2030. The Climate Council says power prices in New South Wales could rise 26% by 2035 without major additions to renewable generation and storage.