Australia's growing data centre industry could push electricity bills up by 26%, according to new analysis. The country already hosts 260 data centres, mostly in Sydney and Melbourne, with dozens more planned. This rapid expansion, driven by artificial intelligence, is raising concerns about energy and water consumption.
The technology sector is pushing for Australia to become a regional hub for data processing and storage. However, the increasing number of data centres is putting pressure on power grids and water supplies. Experts warn that without proper planning, households could face significantly higher electricity costs.
Data centres require vast amounts of energy to run servers and cooling systems. As AI adoption grows, so does the demand for data processing, exacerbating the strain on resources. There is a growing expectation that new data centres should meet their own energy needs, but policy questions remain unanswered.
The impact on water resources is also a concern, as data centres use large volumes for cooling. With Australia already facing water scarcity issues, the industry's growth could exacerbate these challenges. Policymakers are urged to consider regulations that ensure sustainable development of the sector.
