Fears big tech plants’ voracious appetite will drain grid
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But data centers use large amounts of energy to power banks of computers and water to stabilize temperatures. The energy market operator said in August that data centers could need 12 percent of the energy produced by the national grid in 2050. They are currently using 3 percent.
Australia’s transit network is already under serious pressure, according to sources who declined to speak publicly until the plans are finalized; That’s why the Labor cabinet is considering options to pressure tech firms such as Amazon and Microsoft to link local investments in data centers with corresponding investments in renewable resources. The government wants companies to undertake large wind and solar energy projects or produce their own batteries on-site.
A senior government source said many firms building data centers were also investing in energy, but the ventures needed major project status to facilitate approvals.
“Our expectation is that many of these projects will bring additional power to the grid,” they said.
Labor is keen to accelerate the energy transition to meet climate targets, but the rollout of renewables has been delayed by bureaucracy, local protests and financial constraints.
While the Climate Change Authority recommends reducing emissions by 62 to 70 percent by 2035, it cited the high energy demands of data centers as a significant risk. This range was adopted by Climate Change and Energy Minister Chris Bowen, whom the opposition labeled a part-time minister after he took over as COP climate summit negotiating chair despite losing the right to host Türkiye.
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Matt Kean, the authority’s chairman and former NSW Liberal government treasurer, said technology firms should build their own batteries and other manufacturing and storage facilities. “This is what households do to get the lowest-cost electricity available,” he said in this byline.
One reason the government wants tech giants to create their own energy sources is that other nations with limited electricity and water resources have faced a backlash against building data centers, similar to the resistance to wind farms.
Data centers are blamed for water shortages in Mexico, and more than 20 percent of Ireland’s electricity is used by data centers. South Africa’s routinely disrupted power grid is being further augmented by data centres, and similar concerns have been voiced in Britain, India, the Netherlands and Spain. according to a New York Times investigation.
More than 15 data centers worth $97 billion have been blocked or delayed in the US in recent years.
At least 16 data center projects worth a total of $64 billion have been blocked or delayed as opposition to the developments grows, according to a new study by Data Center Watch, a grassroots group that tracks the development of data centers.
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