Data centres could use 10% of Australia’s electricity by 2030—more than manufacturing (Morgan Stanley Research). Based on AEMO forecasts, CZI predicts an 11 TWh clean energy shortfall, likely to be filled by coal, prolonging its use (1-2 GW of coal capacity).

CZI’s project seeks policy, community and industry alignment to ensure Australia’s data centre opportunity is realised—carbon free

Electricity consumption is forecast to surge by 48% by 2035 and 55% by 2050, according to Australian Energy Market Operator’s (AEMO) 2024 Integrated Systems Plan (ISP). This raises an essential question: where will we source the additional energy needed to meet this demand?

The 2024 State of the Environment (SoE) report identifies a “stable” greenhouse gas emissions trend for the five years to June 2021 and warns that stability falls far short of what is needed. The report recommends urgent and substantive action to reduce the state’s greenhouse gas emissions. Prepared by the Planning Commission with input from government agencies, environmental organisations and research institutions, the 2024 SoE report was tabled in Parliament on 17 September.

The Tasmanian Government recently closed the public feedback phase of its draft Emissions Reduction and Resilience Plans (ERRPs). The ERRPs became legislative requirements in 2022, when Tasmania’s new emissions target of net-zero or lower from 2030 was set.

The global trend toward a fossil fuel-free future is set. It is driven by binding greenhouse gas emission reduction targets set by international agreements and reinforced by Tasmania’s state legislation mandating local emission reductions targets. For Tasmania, the question is not if it will transition away from fossil fuels, but when and how.