The Clean Energy Council has today released a framework to leverage Australia's rapidly booming data centre industry into a catalyst for billions of dollars in new electricity investment while avoiding pressures being placed on existing electricity users.
The CEC’s paper titled, Powering the digital economy: Resolving competing energy demands between households and data centres, sets out how data centres can enter into the market expanding Australia’s overall electricity supply and protecting existing electricity users while unlocking jobs and investment across regional communities.
Clean Energy Council Chief Executive, Jackie Trad, said Australia has a once-in-a-generation opportunity to become the Asia-Pacific region’s digital infrastructure hub that can deliver transformative economic benefits for regional towns.
"Australia doesn’t have to choose between powering homes and powering the digital economy. We can do both, provided every major new electricity user helps secure the next generation of wind, solar and battery projects,” Ms Trad said.
"Every data centre can help unlock new generation and storage to grow our overall supply of electricity and ultimately deliver opportunities for the regional communities hosting that infrastructure.
Australia's data centre sector is expected to grow rapidly over coming decades, with electricity demand projected to increase from around two per cent of National Electricity Market demand today to almost ten per cent by 2050.
The Clean Energy Council's proposed framework would require new data centres to purchase their electricity from new renewable energy projects, complemented by renewable energy certificates in the interim while new wind and solar farms are being constructed.
The approach would create a flexible contracting arrangement that delivers a strong investment signal for new renewable energy while providing a solution for data centre operators to manage their energy needs with delivery timelines of new generation.
Australia doesn’t have to choose between powering homes and powering the digital economy. We can do both, provided every major new electricity user helps secure the next generation of wind, solar and battery projects.Jackie Trad Clean Energy Council CEO
Importantly, the framework ensures new electricity supply enters the grid and avoids data centres competing with existing users such as households and businesses. Further, the framework helps to deliver the significant economic benefits well beyond the electricity sector through jobs, taxes and regional development.
Every new renewable project supported by data centre demand creates work for Australian construction companies, engineers, manufacturers, electricians, transport businesses and local suppliers, while delivering lasting economic benefits to regional communities.
"This is a regional development opportunity as much as an energy policy opportunity," Ms Trad said.
"When data centres help to bring in new renewable energy projects, they're also helping create tens of thousands of regional jobs, generating hundreds of millions of dollars in community benefits and local government revenue, and creating long-term opportunities for Australian businesses right across the clean energy supply chain," she said.
ENDS
For more information or to arrange an interview, please contact:
Liam Straughan
Clean Energy Council Media Officer
+61 409 470 683
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