Australia could cut AI emissions through data centres
Author: Joe Peck
Australia could reduce global AI emissions by hosting more data centre infrastructure and using renewable energy to power computing, according to a study by economics research and advisory firm Mandala Partners (commissioned by Australian industry body Data Centres Australia).
The report argues that Australia could capture AI demand that might otherwise be hosted in Southeast Asia, where more carbon-intensive energy generation is used.
Hosting a 1.9GW AI compute export opportunity in Australia could produce an estimated 3.2 million tonnes of CO2 emissions, compared with 11.9 million tonnes if the same capacity were hosted in Indonesia.
Mandala says Australia is well positioned to become a regional hub for lower-emission AI compute, effectively exporting renewable energy through computing services rather than physical electricity infrastructure.
Data centres could deliver economic benefits
Capturing the AI export market could generate up to $4.1 billion (£3 billion) in additional annual economic activity, support up to 17,120 jobs, and drive up to $52 billion (£38.5 billion) in new investment.
Mandala Partner Tom McMahon says, “We know Australia is capable of producing abundant clean energy, but the challenge is how to export that energy to the world.
“Exporting clean energy via compute takes advantage of existing subsea cables that are responsible for carrying data and internet traffic in and out of Australia.”
Belinda Dennett, Chief Executive Officer of Data Centres Australia, also notes that investment in digital infrastructure could strengthen Australia’s role in the energy transition while supporting economic growth and sovereign capability.
The report forecasts that Australia’s data centre industry could generate $5.6 billion (£4.1 billion) in annual economic activity and support 23,040 ongoing jobs by 2030, with construction activity contributing a further $19.8 billion (£14.6 billion) and 18,930 jobs.
The full report is available to view via Data Centres Australia’s website.
