What Australia’s growing demand for energy means for data centres

Australia's data centre industry is on the cusp of a transformative decade. With the International Energy Agency reporting that global data centre electricity consumption could double by 2030, the pressure is on to ensure our energy infrastructure can support both booming AI demand and sustainable growth.

Today, Japan's total electricity consumption is 1 billion gigawatt-hours (2023) for a population of 124 million. The expected demand in Australia will exceed Japan's current electricity consumption, which speaks to the urgency of the challenge.

Australia is uniquely positioned to lead the way, as we have the tools to build a greener digital economy, like the land mass for renewable energy projects and reducing emissions wherever possible. By investing in energy-efficient data centres, we can turn AI-driven growth into a catalyst for a more efficient and sustainable future. 

Growing demand for electricity

Currently, five per cent of electricity usage in Australia is by data centres. This is expected to rise to eight per cent by 2030, which is only a few short years away. The increase in computing power required for next-generation chips is staggering – we're talking jumps from four kilowatts per rack to potentially a megawatt per rack. 

So, where does the extra three per cent (or more) come from?

• Data centre operators: building energy efficient facilities and deploying advanced cooling technologies. 
• Neoclouds and hyperscalers: ensuring power-hungry AI workloads are matched with sustainable infrastructure.
• Utilities and energy providers: securing additional capacity and diversifying sources. 
• Government: setting the policy and investment frameworks to enable growth. 

Australia must position itself as an attractive market for high-compute organisations and GPUaaS providers (neoclouds), while ensuring it can supply the necessary power to support their operations. Otherwise, developers will take their projects overseas like the US, Asia or Europe. Governments in these markets are leading the way from the top, whereas in Australia, acknowledging the need for solutions and implementing them tends to be a battle from the ground up. 

Energy innovation

Whether your data centre is old or new, its energy efficiency can still be maximised. Supporting high-density, AI-driven workloads without increasing environmental impact requires innovation at every level. 

At Interactive, our liquid-to-chip and immersion cooling solutions in our data centres mean less energy is demanded and wasted. We've completed a proof of concept in Brisbane for a solar farm. There are also international research teams looking into how to harness excess kinetic and heat energy into something useful, which would be a significant innovation in Australia. 

It's worth noting that not every data centre is a hyperscaler. Interactive operates in the regional data centre market, supporting AI workloads on a smaller scale. This makes our sustainability challenges more manageable and also highlights an opportunity: designing smaller data halls within larger facilities can dramatically improve cooling efficiency. 

Australia's opportunity to lead 

Australia has the potential to become a global model for sustainable digital infrastructure. Our geographic advantage – vast land mass – positions us to expand renewable energy generators like solar farms to support the grid. 

The support for this must be unified, from utility leaders to state and federal governments to local communities. 

Policy makers have a role to play in keeping investment alive in Australia to empower this essential development. Today, older facilities still operate with outdated cooling technologies and high energy wastage without any oversight. Incentivising or mandating upgrades could make a significant difference to the industry's overall carbon footprint. Regulatory benchmarks have the potential to uplift this realm of the industry – data centres can be a model for digital transformation. 

Preparing for what's next

The twin pressures of AI-driven growth and sustainability are only intensifying. By investing now in efficient infrastructure, renewable energy partnerships and forward-thinking regulation, Australia can position itself not just to cope with future demand, but to lead in building the sustainable digital backbone the AI era will require.

For Interactive, that means continuing to deploy advanced cooling systems, exploring renewable integration and working closely with clients to ensure their AI ambitions can be realised without compromising environmental goals.

Get in touch 

Energy is more than a bottom-line cost; it's a growing area of interest across technology. With 35 years of experience, Interactive stands as a leader in data centre services, hardware maintenance and cloud. 

Contact us to find out how we can help you to find out how we can help you get ahead of the curve.