Fear data centres leaving energy transition ‘worse off’
Claims that data centers add renewable energy to the grid and help decarbonise have been challenged by a leading environmental group, which has called for a moratorium on development.
Greenpeace questioned the industry’s environmental credentials in a comprehensive report, accusing it of failing to offset its own emissions with new solar and wind and “stacking massive new loads” on the grid.
He is also harshly critical of data center proposals that involve on-site gas generation, including a NSW Cloud Carrier project involving a 700-megawatt power plant, and questions the status of “critical infrastructure” given that “AI is being used for exploitation, warfare and other human rights abuses”.
Australia has become the second biggest destination for data center investment globally as tech companies rush to meet demand for AI tools.
The questions addressed the massive use of energy, water and land required for computing power, along with varying views from civil society.
While governments have generally welcomed business investment, concerns from state and federal energy ministers (except Queensland) in favor of a 100 per cent renewable energy offset for new data center proposals have been ignored.
The Greenpeace report, led by independent climate analyst Ketan Joshi, who has closely examined data center environmental issues, casts doubt on the “lack of evidence” for claims that operators are already producing new clean energy.
The report stated that the renewable energy credits used by some players are unlikely to amount to real additional energy.
Even the use of power purchase agreements (contracts with buyers to sell energy upon completion) was controversial, as the solar and wind projects examined were often near completion and unlikely to depend on data center support to move forward.
Mr Joshi said the findings challenge the idea that data centers are actually accelerating the clean energy transition and helping achieve net zero targets.
“Unless the data center industry produces new fossil fuels and new renewable energy that far outweighs the new demand, we will be worse off,” he said.
“Currently data centers are increasing coal and gas production and delaying shutdowns; shoving polluting gas into data centers instead causes direct harm.”
Lobby group Australian Data Center says the industry has invested billions of dollars in grid and recycled water infrastructure, complies with energy efficiency regulations and pays 100 per cent of electricity network costs.
While Energy Minister Chris Bowen confirmed regulatory options were being considered, he said data centers could be a “net plus” for the energy system if done right.
“The best thing to look at most immediately is a rule change through the Australian Energy Market Commission to say, ‘If you want a data center in Australia, great, we welcome investment, but you’ll bring your own renewable energy, you’ll be flexible and you’ll help us manage the grid,'” he told reporters on Tuesday.
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