How much local power demand could Melbourne’s data centres reach by 2040?

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Melbourne's Data Centres Could Account for 20 Per Cent of Local Power Demand by 2040

Melbourne's data centres are projected to significantly increase their share of the city's local power demand, reaching approximately 20 per cent by the year 2040. This surge in demand is driven by a global increase in computing power needs, largely connected to artificial intelligence development.
Growing Strain on Infrastructure

The rapid expansion of data centres presents a substantial challenge to existing infrastructure. By 2030, these facilities are expected to consume around 10 per cent of Melbourne's local power. This growth is occurring at a pace comparable to the widespread adoption of air conditioning in the 1950s, but compressed into a much shorter timeframe.
Water Resource Pressure

Beyond electricity, data centres also place considerable pressure on water supplies. It is estimated that these centres could consume approximately 20 billion litres of water annually in Melbourne, representing about 4 per cent of the city's total drinking water supply. This highlights the multifaceted strain these facilities place on local resources.
Risk of Unregulated Growth

The speed of investment in data centres is outpacing the development of regulations, creating a risk of a "race to the bottom." This scenario occurs when cities may bypass environmental scrutiny in an effort to attract investment, potentially leading to unsustainable development practices.
Global Collaboration on Standards

In response to these growing concerns, mayors from 40 cities, including Melbourne, have committed to the Global Urban Data Centres Pact. This initiative aims to establish standards for data centre operations, focusing on the efficient use of clean energy and resources, and better integration into urban planning frameworks.

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How much local power demand could Melbourne’s data centres reach by 2040?

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