NSW fast tracks energy and water shortages

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The International Energy Agency (IEA) estimates that data centres account for approximately 1-1.5% of global electricity use, which translates to around 330 million tons of CO2-equivalent emissions annually. This figure represents about 0.9% of energy-related greenhouse gas emissions.

The demand for digital services, including cloud computing and artificial intelligence (AI), is rapidly increasing. This growth is expected to double data centre electricity consumption by 2030, primarily driven by AI applications.

Australia ranks among the world’s top data centre hubs, with over 250 facilities. A recent report by Knight Frank indicates that in 2024, total data centre investment was around $US6.7 billion, the second-highest level in any nation, behind the U.S.

Data centre investment
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.