Australia's rapidly expanding data centre industry could find its power solution in the country's surplus renewable energy, according to a leading industry figure. This innovative approach promises to support both technological growth and environmental targets.
Harnessing Untapped Potential
Greg Boorer, founder and chief executive of CDC Data Centres, told the Financial Review Infrastructure Summit that excess electricity generated by renewables during peak daylight hours represents a significant opportunity. He believes this unused power could effectively fuel the nation's burgeoning data centre sector while maintaining progress toward net zero emissions.
"We could actually be in a better position than we are today, from an energy perspective, if we actually unlocked the untapped potential that is sitting under our noses today," Mr Boorer stated during his November 15 2025 address. His comments highlight the growing push for industry and government collaboration to maximize efficiency within existing power systems.
Regional Transformation Opportunities
The Upper Hunter region has emerged as a prime candidate for data centre development, with both state government and industry actively investigating its potential. The area offers several advantages including rehabilitated industrial land, established power grid connections, and reliable water supplies.
Muswellbrook Shire Council, located within the Hunter Renewable Energy Zone, has already received inquiries about establishing data centres in the region. The shift toward this new industry promises multiple benefits for regional communities, including upgraded telecommunications networks, enhanced energy infrastructure, and significant job creation.
NSW Minister for Planning and Public Spaces Paul Scully confirmed the government's openness to proposals that would repurpose post-mining land for economic development. "The water and energy connections already servicing mining land make it prime real estate for data centres post mining use," he told the Newcastle Herald.
Industry Momentum and Global Context
Energy giant AGL has previously indicated that data centres could form part of the Hunter Energy Hub, a major development on the site of the former Liddell Power Station. The 10,000-hectare project aims to integrate renewable energy, grid-scale batteries, and green industrial precincts.
Former AGL chief operating officer Markus Brokhof highlighted the potential for creating an integrated ecosystem, noting that using heat generated by data centres would contribute to utilizing all waste streams effectively.
According to Knight Frank's 2025 Global Data Centres Report, Australia has become the world's second-largest destination for data centre investment. The sector is projected to grow at approximately 20 percent annually until 2030, driven by the nation's high per capita data consumption and the rapid advancement of generative artificial intelligence applications.
Australian consumers already rank among the world's highest data users, averaging around 361GB per month. This increasing demand, combined with the push toward sustainable energy solutions, positions the country at the forefront of a global shift in how data infrastructure is powered and managed.
