By Giles Parkinson
Publication Date: 2026-05-07 02:51:00
Australia’s largest coal producer, AGL Energy, has predicted a massive increase in data center demand over the next decade, with a potential seven-fold increase, in what it described as “encouraging” news that will underpin its energy assets.
AGL CEO Damien Nicks said in a presentation to investors on Wednesday that the Australian Energy Market Operator (AMEO) forecasts of “exponential” growth in demand for AI-driven data centers may be exceeded, particularly in New South Wales, Victoria and the ACT.
“Today, operational data centers cover approximately five terawatt hours of energy needs in the NEM,” Nicks said.
“This amount is expected to double once the projects under construction are operational and reach full capacity, with a further 25 TWh of forecast demand should all projects currently under development be realized in the NEM – a combined forecast of 34 TWh, which is huge.”
Nicks described this development as “encouraging” – and although he noted that…
