Greenpeace says AI data centres could consume 13% of Australia’s power
A Greenpeace report warns that the surge in power-hungry AI data centers in Australia threatens the country's energy transition, projecting data centers could demand more new electricity than cars or homes by 2040. This demand could lead to increased reliance on fossil fuels, prompting calls for new data centers to source power from new renewables and for greater transparency regarding energy use and emissions. Australian government bodies are considering proposals to require data centers to fully offset their power consumption with new renewable energy.
Key Takeaways
- A Greenpeace-commissioned report says data centres could rise from 2% to 13% of Australia’s total electricity use by 2040.
- AEMO figures in the report show projected data-centre demand in 2040 more than fivefold higher than in its 2024 outlook.
- The Australian Bureau of Statistics said data-centre spending hit $2.6 billion in the September 2025 quarter, up more than 140% year on year.
- Transgrid told a NSW parliamentary inquiry it had received inquiries representing more than 10 gigawatts of potential load, with about 6 gigawatts in formal applications.
- The AEMC will report back in July on proposals including full renewable offset rules, peak-demand reductions, and energy-use reporting.
Why It Matters
The immediate issue is grid planning: a load that grows from 2% to 13% of national electricity demand by 2040 can arrive faster than renewable generation, storage, and transmission projects. That raises the risk that coal and gas plants stay online longer, even as governments try to close them. The policy response is already moving: NSW has fast-tracked 15 data-centre projects, and federal and state ministers are considering full-offset and reporting requirements. Watch the AEMC’s July options paper for how those rules might be implemented.
Read full article at abc.net.au