As APAC experiences unprecedented demand for data centres, fuelled by the explosion of data and cutting-edge technologies like AI, the strain on power grids has become a pressing concern.

Australia faces a potential power crisis by 2027, driven by the combined impact of coal plant retirements, stalled renewable projects, and rising electricity needs.6 The Australian Energy Market Operator forecasts that overall electricity consumption will nearly double by 2050. Data centres currently consume 5%, or 1,050 MW, of the electricity on Australia’s power grid, but this figure is projected to rise to 8% by 2030, according to investment bank Morgan Stanley. This comes amid a renewable energy transition for Australia, where more than half of its coal plants are slated to close by 2033. The pressure is on to bridge the gap, but rising demand from electric vehicles, hydrogen production, and data centres is further compounding the challenge.

"Currently, there is tension between continued digital economy growth and sustainability goals. Countries are forced to decide between freezing their digital economy’s progress, or choosing either new “dirty” power stations or alternative energy options like geothermal, hydrogen, nuclear, and decentralised generation, “ said Elke Kornalijnslijper Head of Sustainability Consulting, Asia Pacific, JLL. 

"Data centre parks and clusters offer resource optimisation, interconnectivity, growth opportunities, and appeal to tech talents. These facilities shape the data centre landscape through higher efficiencies, promising financial gains, operational excellence, economic prosperity, and vibrant tech talent ecosystems, “ added Dr. Glen Duncan Head of Data Centre Research, Asia Pacific. 

It is essential to understand the critical challenges and opportunities shaping the region's data centre landscape and the intricate balance between sustainable data centre growth and power availability. Discover more about the current state of APAC power grids, explore potential risks and innovative solutions for ensuring reliable power supply, and learn how power infrastructure considerations are influencing data centre site selection.

Download the JLL Report Here: Power moves: How the future of the grid will impact the next wave of data centres

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