Australia's datacentre boom raises economic and environmental concerns

They’re a key part of the digital and AI economy but they come at a high environmental cost and offer few operational jobs. Follow our Australia news live blog for latest updates. Get our breaking news email, free app or daily news podcast.

On Mamre Road, in Sydney’s outer western suburbs, there are plans to build a “hyperscale” datacentre that will be one of the biggest in the world. If approved, the 52-hectare site will include six four-storey buildings that stretch 40 metres high, alongside 936 cooling units and 852 diesel backup power generators. The proposed datacentre is just one example of the rapidly growing industry in Australia.

The country is in the midst of a datacentre boom, with several major projects underway or planned. This growth is driven by increasing demand for digital services and the need for local infrastructure to support the rapidly expanding AI sector. Datacentres are a crucial component of the digital economy, providing the infrastructure needed to support cloud computing, data storage, and AI applications.

The environmental impact of these facilities is a concern. Datacentres require large amounts of power to operate and cool, and can have a significant effect on local ecosystems. The proposed Mamre Road datacentre, for example, will consume large amounts of electricity and water for cooling.

The boom also raises questions about the economic benefits of datacentres. While they create some construction jobs during the building phase, they typically require few operational staff once completed. This has led some to question whether the economic benefits of datacentres outweigh the environmental costs.

Why this matters: The datacentre boom in Australia highlights the tension between the economic benefits of digital infrastructure and the environmental costs. As the demand for digital services and AI applications continues to grow, the need for sustainable and environmentally friendly datacentre solutions will become increasingly important. Developers and businesses will need to balance the economic benefits of datacentres with the environmental impact, and consider innovative solutions such as renewable energy sources and more efficient cooling systems.

For consumers, the growth of datacentres means faster and more reliable digital services, but also raises questions about the environmental impact of their online activities. Ultimately, the datacentre boom in Australia serves as a reminder of the need for a more sustainable approach to digital infrastructure, one that balances economic benefits with environmental responsibility.