Figures show the electricity usage of a new $200 million artificial intelligence (AI)-ready data centre in Maroochydore could equate to that of 10,500 homes.
Technology infrastructure company NEXTDC Limited says its five-level facility, which will be its second data centre in the region, is expected to be online between January and June 2027.
Named SC2, the centre at 10 South Sea Islander Way, Maroochydore, will adjoin NEXTDC’s existing SC1 facility and be co-located with the international submarine cable-landing station.
NEXTDC’s website lists SC2 as having six megawatts of IT capacity, while its latest investor presentation says it is expected to initially provide about one megawatt, with about six megawatts planned in total.
IT capacity refers to the power available to its computer equipment, rather than all the electricity needed to run the building.
If that equipment operated at full capacity around the clock, it would use 52.56 gigawatt-hours of electricity a year – equivalent to the annual use of about 10,500 typical homes on the Energex network, based on its benchmark of 5024 kilowatt-hours a year for a residential customer.
NEXTDC’s existing SC1 centre has about one megawatt of IT capacity, taking the two Maroochydore facilities’ published capacity to about 7 megawatts.
If both operated continuously at full capacity, their computer equipment would use the equivalent annual electricity of about 12,200 typical homes.
Those comparisons do not include the electricity needed for cooling, pumps, lighting, power conversion and other building systems – meaning total annual use at full capacity would be higher.
They are also full-capacity calculations, rather than forecasts of the centres’ actual consumption.
According to the most recent available Census data, Maroochydore has around 11,420 dwellings.
WORDS: Candice Holznagel
HOUSING MUST NOT BE DATA CENTRES’ COLLATERAL DAMAGE: HIA WARNS
The Housing Industry Association (HIA) has welcomed the Prime Minister’s acknowledgement that housing must remain a central consideration as Australia expands its digital infrastructure and data centre capacity.
HIA chief executive industry and policy Simon Croft says, “While data centres may play an important role in Australia’s economic future, governments must not lose sight of the country’s most urgent challenge: delivering enough homes for a growing population. We are already seeing growing competition for land, electricity, water and infrastructure at a time when governments are struggling to deliver the housing supply needed to improve affordability.”
He says examples are emerging where housing projects are being displaced by data centre developments.
“There are examples in states such as Victoria and New South Wales, where land previously earmarked for housing is being fast-tracked for data centre development,” he says.
“The preferential planning treatment afforded to some data centre projects should also be called out. While we
have no objection to this type of development, housing should be afforded the same urgency.
“Under fast-track planning mechanisms, it is entirely conceivable that a data centre spanning many hectares could be approved faster than a single home. Families looking for a home should not find themselves behind data centres in the queue for land, energy connections or essential infrastructure.”
HIA says the issue is particularly acute in growth corridors and regional hubs, where housing developments are already facing delays due to infrastructure constraints.
The association also called for greater scrutiny of the significant energy and water demands associated with large-scale data centre developments and how those impacts are managed alongside community and housing needs.
JASON GARLAND ANSWERS YOUR BIGGEST QUESTIONS ABOUT DATA CENTRES
Q: For people who don’t understand data centres, what exactly happens inside one and why do they require so much electricity?
A: Data centres are essentially the digital factories of the modern economy. Inside them are thousands of servers that store data, run applications, support websites, process online transactions and, increasingly, perform AI workloads.
Every time you use internet banking, visit a website, stream a movie or even generate a cat meme using AI, a data centre is involved somewhere behind the scenes. The electricity demand comes from two main sources: the computing equipment itself and the cooling systems needed to remove the heat generated by that equipment. AI systems, in particular, can require significant computing power, which in turn increases energy consumption.
Most people use data centres every day without realising it, whether they’re accessing Microsoft 365, streaming content, using online banking, shopping online or interacting with AI-powered services.
Q: The data centre’s electricity load has been compared to the annual power use of around 10,500 homes. Is this level of energy use unusual for a facility of this size?
A: While that figure sounds large when compared to households, it is not unusual by modern data centre standards. Data centres are designed to operate 24 hours a day, 365 days a year, and they support services used by businesses, governments and consumers across entire regions.
AI-focused facilities typically have even higher power requirements than traditional data centres because of the specialised processors they use. The most important consideration is not simply how much electricity is consumed, but how efficiently that energy is converted into useful computing services and how the facility sources and manages its power requirements.
Q: What will nearby residents notice once the data centre is operating?
A: For most residents, the reality is that they will probably notice very little once construction is complete. Data centres generally do not generate significant traffic volumes compared with industrial or logistics facilities because relatively few staff are required on site. People are often surprised to learn that large data centres can operate with comparatively small permanent workforces.
In practical terms, residents are more likely to benefit indirectly through improved digital infrastructure, greater local investment and increased technology capability within the region.
Q: Will there be any noise impacts?
A: Cooling systems do generate noise and are typically the most noticeable operational component of a data centre.
However, modern facilities are generally designed with acoustic controls, screening, equipment placement and planning requirements intended to keep noise levels within approved limits. The actual experience will depend on the final design, prevailing wind conditions, and proximity to the site. In most contemporary data centre developments, noise management is considered a core design requirement and is typically addressed as part of the approvals process from the outset.
Q: What are the benefits of having this type of technology infrastructure located on the Sunshine Coast?
A: From a regional perspective, having major digital infrastructure located on the Sunshine Coast can deliver several benefits. It strengthens the region’s resilience by reducing reliance on infrastructure located solely in Brisbane, Sydney or Melbourne.
It can improve access to high-performance computing services for local businesses, support growth in technology and digital industries, and make the region more attractive for organisations that require secure, reliable connectivity.
The Sunshine Coast has been investing in its digital economy for many years through initiatives such as the international broadband cable-landing station and associated technology infrastructure.
Facilities like this can help build on that foundation and support future innovation, research and economic development opportunities.
IN SUMMARY
As AI adoption accelerates across every industry, Australia will require more computing capacity to support business and government workloads. The key challenge for all communities is finding the right balance between enabling digital infrastructure, managing energy demands and ensuring developments are appropriately planned and integrated into the local environment.
My Weekly Preview contacted NEXTDC Limited for comment but had not received a response by publication time.
