By Paul Sakkal
Publication Date: 2025-12-01 11:30:00
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But the data centers use enormous amounts of energy to power the computer banks and water to stabilize temperatures. The energy market operator said in August that data centers could require 12 percent of the energy generated by the national grid in 2050. They currently use 3 percent.
Australia’s transition grid is already under strain, so the Labor cabinet is considering pressuring tech firms such as Amazon and Microsoft to match local data center investment with matching renewable energy investment, according to sources unwilling to comment publicly until the plans are finalized. The government wants companies to finance large wind and solar projects or build their own batteries locally.
A senior government source said many companies building data centers also invest in energy, but the companies needed major project status to streamline approvals.
“We expect many of these projects will add additional power to the grid,” they said.
