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    Home»Startups»Report: AI could drive up Australian power prices by 26% by 2035
    Startups

    Report: AI could drive up Australian power prices by 26% by 2035

    Editor Times FeaturedBy Editor Times FeaturedJune 3, 2026No Comments3 Mins Read
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    The race to construct information centres in Australia might pressure family electrical energy costs up by as a lot as 26% inside a decade, a examine has discovered. 

    The synthetic intelligence hubs might additionally use as a lot electrical energy as all houses within the state of Victoria by 2030. 

    The Local weather Council issued the warnings on Wednesday in a report into the rising tech trade that has established 162 information centres throughout Australia, with one other 90 deliberate. 

    The forecast comes lower than per week after a NSW inquiry into the sector heard requires a knowledge centre coordinator, and following Greenpeace’s request for a moratorium on approvals so requirements could possibly be developed. 

    Information centres are booming in Australia as expertise corporations similar to Microsoft, Amazon, AirTrunk and NextDC try to satisfy demand for AI expertise. 

    However the council’s report, known as Clouded Future, discovered their electrical energy use had practically doubled in Victoria over the previous yr and had risen 18% in NSW. 

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    If information centre development continued with out renewable vitality necessities, and as a substitute relied on gasoline, they may triple their vitality and water use by 2030. 

    By 2035, the elevated demand might increase wholesale energy costs in NSW by as much as 26% and in Victoria by 23%, the examine discovered, whereas vitality invoice in South Australia and Tasmania would even be impacted. 

    Guidelines wanted

    Governments ought to urgently introduce strict guidelines for information centres to keep away from these value hikes, Local weather Council chief govt Amanda McKenzie mentioned.

    ”Out-of-control building of information centres would hit Australians within the hip pocket,” she mentioned. 

    ”Governments should proactively handle the surging demand, ensuring that they’re powered with clear, renewable energy.”

    The report issued seven suggestions for information centre guidelines, together with attaining 100% renewable energy era inside three years of operation, water effectivity requirements, renewable vitality backup similar to batteries, and better transparency about water and vitality use. 

    Some builders have been already planning to make use of renewable vitality and recycled water in initiatives, Griffith College affiliate professor Joel Gilmore mentioned, however all centres must be required to spice up environmental requirements.

    ”There must be not simply voluntary motion however enforceable laws from authorities to make sure there’s a stage enjoying subject,” he mentioned. 

    If tech corporations didn’t tackle potential vitality dangers now, Assoc Prof Gilmore mentioned, Australia might undergo the implications for years. 

    ”We’re seeing in different international locations around the globe the place information centres have gone in unregulated, inflicting increased costs, taking important quantities of water from the area people,” he mentioned. 

    ”After we’re speaking concerning the potential scale of development we’re seeing globally and in Australia, we need to get out in entrance of this now and guarantee that we will plan.”

    In 2025, Australia attracted the second-highest information centre funding on the planet following the US, in keeping with Knight Frank. 

    AAP.



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