How can we create sustainable data centres in Australia?
March 28, 2025
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Energy-efficient AI, on-site renewable energy, and smarter cooling choices will help create more sustainable data centres
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Data centres in Australia power everything from banking to AI. As we use more data, these centres use more energy. That’s a challenge we need to face.
Right now, there are about 200 data centres in Australia. Together, they use 5 percent of the country’s electricity. That number is rising. It’s putting pressure on power grids and making it harder to reach net zero targets. To keep up with demand—and meet sustainability goals—we need better ways to power data centres.
The good news? We are seeing change due to smarter technologies and better strategies. From energy-efficient AI models to renewable energy solutions, organisations are starting to reduce the environmental impact of their data centres.
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Modern data centres are the backbone of our digital world. These facilities are designed to support the growing demand for data with advanced infrastructure and technology.
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How much energy do data centres use in Australia?
The answer to that question above: A lot. One large data centre in Australia can use as much electricity as 50,000 homes. And it’s only growing. By 2030, data centres in Australia could account for between 8 and 15 percent of the country’s total energy use, according to Morgan Stanley.
Where does all that energy go? Servers use about 60 percent of it. Cooling systems use another 40 percent. Many centres use a lot of recirculated fresh water for cooling. With the rise of AI, energy use is increasing fast. Large language models, like ChatGPT, can use up to 100 times more energy than standard applications.
But there’s hope. New AI models like DeepSeek-V3 and Llama 3.1 70b are far more energy efficient. DeepSeek-V3, for example, needs less energy to train and run. It’s part of a growing trend toward lower-impact AI. Even better? The more efficient the model, the faster it works.
These smarter AI models, when combined with renewable energy, are key to reducing emissions from data centres in Australia.
Sourcing renewable energy for data centres in Australia
Data centres are not just for tech giants like Google, Netflix, or OpenAI. Many industries depend on them—finance, engineering, healthcare, construction, and more. They all rely on fast, cost-effective data storage and processing.
There are a couple of ways these organisations can reduce their emissions. They can use power purchase agreements (PPAs) and virtual power plants (VPPs). What are they?
- PPAs let businesses buy renewable energy from off-site sources.
- VPPs connect smaller energy systems, like rooftop solar panels and batteries, into one virtual network. This network acts like a traditional power plant and supplies clean energy.
Amazon is the world’s largest corporate buyer of renewable energy. Its investment in projects like the 154-megawatt Gunnedah Solar Farm in New South Wales helps power Amazon’s Australian operations. And it and benefits local businesses and homes.
Of course, not every organisation can build its own solar farm. That’s where PPAs and VPPs come in. We’re helping businesses of all sizes cut emissions by sourcing renewable energy. These solutions are ideal for urban data centres that have limited space for on-site generation.
As more companies look to reduce their carbon footprint, we think PPAs and VPPs will become a standard part of business operations.
" }Data centres are not just for tech giants like Google, Netflix, or OpenAI. Many industries depend on them.
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Powering data centres in Australia with on-site energy production
Some organisations need reliable, always-on power. For those that and have enough space, on-site renewable energy and storage can be a smart solution.
Take airports, for example. Every day, they process huge amounts of data. Air traffic control, security systems, passenger check-ins, and baggage handling all depend on fast data processing. Power disruptions can cause serious delays and safety risks. That’s why many Australian airports are investing in on-site renewables.
Brisbane Airport has a 14-hectare solar farm powering some of its operations, including its data infrastructure. Melbourne Airport aims to meet half its energy needs through on-site solar by 2030. Its two solar farms will generate 34 gigawatt-hours of energy every year. That’s about 40 percent of the airport’s total use.
The next step? On-site energy storage with backup power. This will improve reliability, support on-time performance, and reduce the need for diesel generators.
Early planning makes all the difference. While airports are leading the way, other sectors are following suit. For example, IKEA is turning its large rooftops into solar farms. For organisations with enough space, on-site renewables offer a practical and reliable way to power their data operations. In doing so, they reduce their carbon footprint.
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By using services like Amazon Glacier, data centres can significantly cut down on energy consumption by reducing the need for always-on equipment.
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Smarter cooling and storage to cut energy use
Cooling is a major energy drain for data centres. But technology is making cooling systems more efficient.
In the past, data centres needed tightly controlled, cool environments. Now, modern equipment can handle higher temperatures. That makes “free cooling”—using outside air—possible in more places.
More data centres in Australia are using advanced monitoring and automation. These systems take advantage of cooler overnight temperatures to reduce cooling costs. Machine learning is helping to optimise energy use too, which reduces waste and boosts efficiency.
Another place to save energy is smarter data storage. Here’s a question: Do we need instant access to every piece of data? Probably not. Services like Amazon Glacier store archival data on hardware that powers down until it’s needed. For organisations with large data stores, reducing “always-on” equipment can cut energy use.
Powering a sustainable future for data centres in Australia
As our demand for data grows, so does our need to power it sustainably. Smarter AI, renewable energy, and on-site storage make it possible to cut emissions without losing performance.
We’re working with clients across industries to turn these solutions into action. With the right strategies, sustainable data centres in Australia can become the norm—not the exception.
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