Site it Right:
Matching Data Centre Demand with Curtailed Renewable Energy in NSW
Australia's rapidly growing data centre sector presents both a challenge and an opportunity for the energy system.
New analysis from Carbon Zero Initiative and the Electrical Trades Union finds that strategically locating data centres closer to existing renewable energy generation could help absorb energy that is currently being curtailed, reduce pressure on the electricity network, lower system costs and create lasting economic opportunities in regional communities.
The report identifies up to 2.1 GW of under-utilised renewable energy capacity across regional New South Wales. In some regions, up to 29 per cent of renewable generation is being curtailed during peak periods.
Rather than viewing data centres solely as a source of new electricity demand, the report explores how carefully planned infrastructure could complement the renewable energy transition by making better use of existing infrastructure.
The report also highlights the importance of meaningful engagement with local communities, local government and First Nations peoples, alongside investment in local jobs, training, telecommunications and other enabling infrastructure.
Developed in consultation with industry, government, network businesses and data centre developers, the report outlines practical recommendations for governments and industry to ensure Australia's digital infrastructure supports both regional development and the clean energy transition.
Download and read the report via the link below:
Public Interest Principles for Data Centres
Electricity demand from Australia’s data centre rush could rise by tenfold consuming more than Sydney, Melbourne and Brisbane combined by 2035. Without new renewable energy, this will place increased pressure on the grid, drive up power bills, and lock in emissions from coal and gas.
Carbon Zero Initiative has brought together an alliance of unions, environment, community and renewable energy industry organisations to call for new data centres to be powered by 100 per cent new build renewables, unlocking cheaper power, new regional jobs and grid stability, for all Australians to share in the benefits.
The alliance includes: The Clean Energy Council, Electrical Trades Union, Australian Conservation Foundation, Climate Energy Finance, WWF-Australia, Smart Energy Council, Nature Conservation Council, RE-Alliance, The Sunrise Project, Queensland Conservation Council, Carbon Zero Initiative and Environment Victoria.
To ensure public benefit, we are calling for data centres to:
Be powered by 100% additional renewables
Strengthen grid stability
Be appropriately sited to minimise impacts on nature and land use
Minimise embodied emissions and maximise efficiency and circularity
Use water resources responsibly
Operate with transparency
Commit to earning and delivering ongoing social licence
Support the training and upskilling of the workforce
Our organisations stand ready to work with governments, policy makers, and industry to ensure that all new data centre developments in Australia serve the public interest.
Our Theory of Change
By championing clean energy, building community, and preserving our natural environment, we can achieve a carbon zero economy by 2040. Through collaboration, innovation, and integrity, we pave the way for a safe climate and more resilient future.