Australia’s data center electricity consumption is projected to increase sevenfold by 2035-36, rising from 5 TWh to 34 TWh per year, raising their share of the National Electricity Market from 3% to 13%. AEMO doubled its count of data centers in development from 97 to 225, driven by accelerating AI and cloud demand. Installed capacity is expected to grow from 1.35 GW today to between 4.7 and 7.4 GW, concentrated around Sydney, Newcastle and Melbourne. Total investment could reach up to 135 billion Australian dollars, covering facilities, power generation, transmission and cooling systems. The main challenge lies in the gap between data center construction timelines of 18 to 24 months and transmission infrastructure timelines exceeding five years.
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