Australia-Pacific

Australia warned over global data centre hotspot status as boom accelerates

New data centres are coming online in Australia at speed to meet AI demand. Industry analysts and environmental groups warn the build-out may outpace adequate planning around climate and water resources. NextDC and AirTrunk are leading the investment wave.

Data centre server racks with cooling rows
Data centre server racks with cooling rowsPhoto: panumas nikhomkhai / Pexels
ABC News Australia14 h agoNXT GMG

ABC News Australia reports that 17 new data centres are under simultaneous construction across Australia as the global AI build-out accelerates. NextDC, AirTrunk and Iren have committed a combined A$14 billion (about $9.2 billion) of investment, making Australia the largest Asia-Pacific data-centre market after Singapore.

ClimateWorks Center director Anna Skarbek told the ABC that "governments need to ensure that data-centre development does not outpace climate and energy infrastructure planning". The AustralianTech industry body estimates new centres could account for 11% of Australia's electricity consumption by 2030, up from the current 4%. The Tilba project in New South Wales is already consuming 3.2 million litres of water a day.

On the Australian Stock Exchange, NextDC (NXT) shares are up 21% year to date; Goodman Group's data-centre development arm has also booked strong growth. The Australian government said its National AI Strategy, due next month, will include data-centre siting guidelines. The Federal Environment Department said its plan would require any new project to demonstrate "total water-equivalent neutrality" as a condition of approval.

AITechEnergyNXTGMGAustralia-PacificABC News Australia
This article is an AI-curated summary of the original story published by ABC News Australia. The illustration is a stock photo by panumas nikhomkhai from Pexels and is not from the original story.

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