Australia’s electricity grid faces “perfect storm”

Monday 18 May 2026

AEMO forecasts, published in The AFR, show electricity use by data centres rising faster than expected, with Victoria’s demand nearly doubling in the past year.

Within a decade, data centres could consume one-eighth of Australia’s current electricity use, reaching 25–35 terawatt-hours by 2036.

Victoria’s demand jumped 94% to 187 MW, while NSW demand rose 18% to 398 MW. Nationally, data centres currently account for around 3% of total demand.

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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.