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AEMO Sees Data Centers Helping Double Australia's Power Use by 2050

June 25, 2026 at 00:23 EDT

Infra & Chips
Policy & Regulation

Australia's energy market operator AEMO has projected that surging electricity demand from data centers will be one of the main drivers nearly doubling power consumption across the country's main grid (NEM) by 2050. Based on its 2026 Integrated System Plan (ISP), the forecast points to computing demand fueled by the AI boom pushing electricity consumption—long flat or declining—onto a structurally rising trajectory.

Aug 28, 2025 · AEMO — 2025 Inputs, Assumptions & Scenarios Report

Data Centers Set to Help Double Australia's Power Demand by 2050

For the first time, AEMO models data centers as a standalone load on the eastern grid (NEM) — projecting their share to leap from ~2% today to ~12% by 2050, a leading driver as total demand nearly doubles.

~2×

Total NEM demand by 2050
205 → 389 TWh

25%+

Avg. annual data center growth through 2029-30

12%

Data center share of NEM by 2050 (from ~2% today)

Data Center Electricity Demand on the NEM

Stacked columns scaled to terawatt-hours (TWh) per year

~4 TWh

~2% of NEM

2024-25

~12 TWh

~6% of NEM

2029-30

~34 TWh

~12% of NEM

2049-50

An ~8.5× rise in data center load over 25 years — today's ~4 TWh already powers about 700,000 households.

"Phantom Demand" in Connection Applications

Only a fraction of applied-for capacity is expected to be built under Step Change

44 GW

applied for

→

~6 GW

actually needed

Roughly 86% of applied-for capacity may never materialize — forcing network providers to rethink their plans.

The Opportunity

APAC's #2 data center destination, after the US
Stable regulation, abundant renewable potential, skilled workforce
Spurs added renewables and battery storage buildout

The Caution

Power prices may rise ~26% in NSW, ~23% in Victoria
Heavy electricity and water use; reliance on gas backup
Pressure on the renewable energy transition

A Global Pattern

Australia's surge mirrors worldwide trends: EPRI projects US data centers reaching up to 9% of electricity demand by 2030, while the IEA expects global data center consumption to double from 415 TWh (2024) to 945 TWh (2030).

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