Back to Headlines
Technology
Jun 24, 2026
Analyzed by Llama- 4 Scout 17B 16E Instruct

Australia's Datacentre Boom: Economic Growth vs Environmental Concerns

AI Summary
Australia is experiencing a datacentre boom with a $155bn investment pipeline, but experts are divided on whether this growth is beneficial for the economy and the environment. The boom raises concerns about energy consumption, water usage, and job creation.

The Datacentre Boom in Australia

Australia is in the midst of a significant datacentre boom, with plans to build one of the world's largest datacentres on Mamre Road in Sydney's outer western suburbs. The proposed datacentre will cover 52 hectares and include six four-storey buildings, 936 cooling units, and 852 diesel backup power generators.

Investment and Growth

The datacentre boom is part of a $155bn investment pipeline over the coming decade, driven by the global rush to build infrastructure supporting the artificial intelligence revolution. There are currently around 160 datacentres operating in Australia, with another 90 proposed.

Energy Consumption and Environmental Impact

Datacentres are significant energy consumers, with current estimates suggesting they account for 2.8% of electricity consumption on Australia's east coast. This is expected to rise to 7% by 2030 and over 10% by the mid-2030s. The Climate Council estimates that wholesale electricity prices on the east coast could be 20% higher by 2035 if the potential extra datacentre demand is not offset by additional renewable energy sources.

Economic Benefits and Job Creation

While datacentres are not major job creators, with studies in the US showing they typically require thousands of workers during construction but only hundreds once operational, some experts believe they can drive productivity growth. Pat Bustamante, a senior economist at Westpac, argues that the datacentre boom is laying the foundation for the next wave of productivity growth, similar to the PC and IT revolution in the late 90s.

The Future Outlook

As Australia continues to invest in datacentres, experts and policymakers are grappling with how to balance economic growth with environmental concerns. The question remains: what level of datacentre investment is beneficial for Australia, and how can the country ensure that the growth of this sector is sustainable and equitable?