Victoria’s data centre push could force state back onto gas-fired power
Victoria is experiencing a surge in electricity demand due to a data centre boom, which may force the state to rely more on gas-fired power. This situation raises concerns about the compatibility of the state's renewable energy transition with its efforts to attract tech companies. The Australian Energy Market Operator warns that additional gas capacity will be needed to support the growing energy needs of these data centres.
- ▪The electricity demand from existing Victorian data centres nearly doubled from 96 megawatts in early 2025 to 187 megawatts in early 2026.
- ▪The Australian Energy Market Operator forecasts that Victoria will need an extra four gigawatts of gas-powered generation capacity in the coming decades.
- ▪Local gas supply is expected to decrease by more than 50 percent by 2030, complicating the energy landscape as coal plants retire.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.