To meet demand from artificial intelligence companies, some of the world’s largest data centres are planned for the outskirts of major Australian cities. Dozens more are planned. OpenAI chief Sam Altman has said Australia could be a global leader.
This week, Prime Minister Anthony Albanese announced plans to fast-track new data centres. He promised the AI boom would not drive up power prices. The government would require big new data centres to “underwrite new power supply” and to “put at least as much energy into our grid as they take out of it”.
The push for more AI data centres is increasingly controversial. Huge data centres use a lot of power to run their servers and keep them cool. In the United States, the AI rush has led to a boom in gas generation as well as for clean energy.
If done poorly, Australia’s data centre boom could risk the ongoing shift to renewables and storage – and potentially drive up power prices.
But if it’s done well, the boom could be a win-win for energy. Many solar and wind projects have been stuck in limbo waiting for grid connections. Locating data centres in these areas could unlock new renewables – and decentralise the AI boom.
