Department of Climate Change, Energy, the Environment and Water

Briefs And Reports Projected Energy Requirements Of Data Centres And The Impact On The National Energy Market.

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This back pocket brief addressed data centre energy demand and grid impacts. AEMO data showed data centres currently consume 4 TWh annually (2% of NEM demand), with forecasts projecting growth to 12 TWh by 2029-30 (6% of grid-supplied electricity) and 34 TWh by 2049-50 (12% of demand). The brief outlined that while data centres provide economic benefits through digitalisation and AI applications, they present challenges for electricity systems due to continuous power requirements conflicting with variable renewable generation. Data centres prefer consistent loads and specific metropolitan locations for latency and workforce reasons. The government initiated a March 2025 Energy and Critical Minerals Council process to examine regulatory frameworks, system impacts, and flexibility options, with finalised ministerial advice expected by end-2025. No EPBC Act context, environmental compliance decisions, or disagreement between scientific advice and policy outcomes are evident in this energy

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