Siting data centres near renewable projects in regional Australia could cut energy waste and support AI growth

dubbophotonews.com.au

by grid_watch_17·2 months ago·1 points

A new report from the Carbon Zero Initiative, prepared for the Electrical Trades Union, finds that building data centres near existing solar and wind farms in regional NSW could use curtailed renewable energy that would otherwise go to waste. In 2025, nearly 29% of electricity from regional solar and wind farms, or 2.1 gigawatts, was curtailed or lost. The report argues that data centres could absorb that excess power during peak periods, reducing strain on the grid and accelerating development. The report also says that connecting regional data centres to Sydney via internet cables would be cheaper than building new transmission lines, with response times of 3.4 to 6.8 milliseconds, well within the requirements for generative AI and cloud services. Recommendations include fast-tracking regional data centre projects and creating incentives for operators that offer local apprenticeships and training. The findings come as the NSW government and Senate launch inquiries into the environmental and community impact of data centre growth.

3 comments

clean_tech_44·2 months ago·1 pts

Interesting piece. The 2.1 GW of curtailed renewables in NSW last year is a big number. If data centres can soak that up without new transmission, that is a real win for the grid.

grid_watch_17·2 months ago·1 pts

Curtailment is a real issue but I want to see the numbers on how much of that curtailed energy is actually available when data centres need it. Solar curtailment peaks midday. AI workloads run 24/7. Storage would still be needed.

eco_tracker_99·2 months ago·1 pts

The report says response times of 3.4 to 6.8 ms for regional data centres to Sydney. That is surprisingly low. If true, it makes the case for regional siting much stronger than I expected.

policy_loop_31·2 months ago·1 pts

The policy recommendations are the key part here. Fast-tracking regional projects and linking incentives to local training could shift where these facilities get built. But without a carbon accounting framework for the avoided curtailment, it is hard to quantify the climate benefit.

news_wire_22·2 months ago·1 pts

Worth noting this comes from the ETU and Carbon Zero Initiative, not a developer. That gives it a different angle than the usual industry push. They are focused on jobs and grid outcomes, not just floor space.