Done properly, data centres can strengthen the grid

Done properly, data centres can strengthen the grid Suzana Cameron Wed, 23/09/2026 - 07:42 Data centres are one of the biggest drivers of new energy demand. AI will drive new demand for electricity, and we have to be clear-eyed about how this demand could overwhelm the grid, and push up household power bills. Those risks are real. We have already seen overseas what can happen when data centre demand grows faster than electricity supply. The government’s triple lock on data centres – bring your own supply, be demand flexible, and cover your grid connection costs – highlights potential benefits we should not overlook. Planned properly, data centres could strengthen our electricity system — making them an asset to our energy system, not a strain. The first is new generation. Data centres are huge, long-term electricity customers. That means they can sign the contracts that help get new renewable energy projects financed. We are already seeing this in Australia. Amazon has contracted almost one gigawatt of renewable capacity here. In April it announced nine new agreements adding 430 megawatts of wind, solar and batteries in NSW and Victoria. Instead of competing with households for the