Introducing Clean Cloud
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 seeks policy, community and industry alignment to ensure Australia’s data centre opportunity is realised—carbon free.
Australia’s Next Mining Boom:
Why Data Centres Must Run on Sun and Wind
Every email sent, every reel watched, every ChatGPT prompt processed depends on data centres. The servers they house are the beating heart of the digital economy. Human flourishing in the modern age can increasingly be measured by the compute power accessible to each of us.
By 2030, these servers could consume between 5% and 15% of Australia’s electricity —surpassing the demand of the manufacturing industry in 2025.
This is not just growth; it’s the next boom. Unlike traditional booms fuelled by coal or gas extraction, this surge will be powered by something far more abundant and sustainable. Solar and wind energy must be the backbone of this data-driven revolution.
Digital Mines
Data centres and the information they store are the mines of the digital age. They store vast amounts of information, underpin financial systems, enable communications, and drive advancements in artificial intelligence. In a study commissioned by the Australian Energy Market Operator, Oxford Economics Australia forecasts that the electricity consumption of data centres is projected to triple from 1,350 MW in 2025 (4TWh) to over 3,100 MW by 2030 (12 TWh) prompting a $26 billion investment, equivalent to our historic mining booms.
If managed wisely, this growth could catalyse a new wave of investment in renewables creating a reliable, bankable demand that fast-tracks the deployment of solar, wind, and energy storage infrastructure. The payoff is twofold: economic growth within both the digital and renewable sectors, forging sustainable prosperity for the future.
However, mis-steps risk ensnaring Australia in a fossil-fuel dependent trajectory for decades, constraining economic growth and undermining climate goals.
The Risk
Currently, data centres account for 2% of Australia’s total electricity usage (AEMO). Whilst the team at Oxford Economics projections’ of 3x growth are accounted for in AEMO’s load and consumption forecasts, more bullish projections are not.
For example, in a research note from Morgan Stanley, researchers see 5% electricity consumption by 2030 as the bear case, rising up to 10% (24 TWh) as their most likely outcome.
Yet, the national transmission grid is already under pressure. Data centre construction requires long lead times, and projects underway today will shape the energy mix for years to come.
If we fail to account for how and where data centres are developed and how they will be electrified, operators will default to chasing whatever energy is available - energy often synonymous with fossil fuels. That path runs counter to the urgent imperative to decarbonise and risks locking in emissions-intensive infrastructure for far longer.
Australia’s digital future demands a firm commitment: data centres powered by sun and wind. It’s a decisive step towards a resilient, prosperous, and carbon-zero economy.
The Opportunity
Australia’s next industrial revolution must not repeat the mistakes of those past. This chapter depends on seizing the moment to embed sustainability at the core of our economy and digital infrastructure growth.
CZI sees an opportunity for an EU style reporting framework to ensure that data centres follow through on carbon positive, energy efficiency and sustainable water use commitments.
Clear, ambitious policies from government could encourage co-location of data centres within Renewable Energy Zones, facilitating seamless integration of renewable generation and storage solutions. Coordinated planning will ensure infrastructure investments deliver maximum economic and environmental returns, while Regional Enhancement Funds provide tangible benefits to local communities, strengthening social licence and fostering equitable development.
The private sector must accelerate partnerships that leverage financial instruments like Power Purchase Agreements to de-risk projects and expedite deployment.
By acting decisively now, Australia can shift from an exporter of fossil fuels to a global leader in clean digital infrastructure, capturing high-value jobs, attracting international investment, and carving out a premium “Clean Cloud” brand in the burgeoning global data economy.
The consequences of inaction are stark: a piecemeal data centre boom locked into fossil-fuel dependency, lost economic opportunity, and higher emissions for decades.
The opportunity is clear, the tools are ready, and the will must follow. It’s time for Australia’s government, industry, and communities to unite behind a coherent vision that makes clean cloud computing a cornerstone of our sustainable future.
The next 12–18 months will define the trajectory – let’s build a clean, prosperous digital economy that’s truly ours.
