Data centres—crucial for the internet’s operation consume substantial energy and have stepped into the spotlight due to their rapid growth. Market research group Industry ARC suggests that the global market for data centres is set to increase from $220 billion currently to $418 billion by 2030.

Unfortunately, there is little public record to indicate the current state of data centre energy consumption in Australia. However, with generative AI, it is expected to increase global power demands by 75% by 2027. Due to this increase, the Australian government has tightened its rules surrounding data centres. Data centres now must meet the requirements laid out by the Government’s ICT Sustainability plan, comply with emission thresholds, ensure a plan is laid out to meet net zero emissions, and have a 5-star NABERS rating or equivalent.

The National Australian Build Environment Rating System (NABERS), established in 1998, measures the environmental performance of buildings. NABERS aim to reduce energy consumption, lower operational costs, and promote sustainable practices within the built environment. This focus on sustainability aligns with the increasing number of data centres seeking carbon-neutral certification under the Australian Government’s Climate Active Carbon Neutral Standard. These efforts demonstrate a growing commitment to environmental responsibility within the Australian construction industry.

NABERS have a 6 star rating system for data centres based on their Power Usage Efficiency (PUE). Their PUE is assessed on three categories – infrastructure, IT equipment, and the whole facility. Whilst generally participation in NABERS ratings has been voluntary, it is mandatory that new government buildings must achieve a 4.5 star NABERS energy rating.

In Ireland, data centres are set to account for 32% of their national electricity demand by 2026. The country boasts easy access to high-capacity subsea cables, thick bundles of fibre optic cables providing giant highways of underwater information. This, coupled with their low tax rates, make Ireland an attractive area of investment for data centres. Companies like Google, Facebook, and Microsoft are just some of the global cloud computing companies using Ireland as a host for their data centres.

Governments, including Australia’s, are rightfully tightening regulations to promote responsible growth and this commitment to sustainability is crucial in an industry accounting for 3% of global electricity demand and 2% of carbon emissions.

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Image: NextDC in Sydney