Data centres are booming in Australia - but at what cost?

Data centres are booming in Australia, but at what cost to the environment and local communities? The sheer size and noise of these facilities have residents like Lucy complaining about constant humming noise from the one just 350m away from her home in Lane Cove, Sydney. With 162 data centres and 90 more planned, Australia is quickly becoming a global destination for these technologies, attracting investors due to its abundant clean energy, natural gas reserves, and land. OpenAI's CEO Sam Altman even suggested the country could become the world's data centre capital.

Australia's booming data centre industry could bring economic benefits, with an estimated A$155bn (£80bn) of investment money lined up. However, concerns about water supplies, energy use and environmental impact are growing. In western Sydney, a proposed 1GW data centre, the largest single energy user, and the biggest in the Southern Hemisphere, are under construction just 100m away from a local community.

Experts warn that data centres' energy demands could triple by 2030, potentially pushing power prices up by 26% in New South Wales.

While the government sees this boom as essential for the digital economy and AI race, leading energy and environmental experts argue Australia may not have the capacity to meet the massive energy and water demands. Some data centre operators have even opted to build new gas-fired power stations instead of investing in renewable energy. Despite the booming investment, many argue Australia's data centre boom could trigger a new generation of coal and gas power plants, reversing the progress made in renewable energy.