Australia and Malaysia expand data centre capacity amid energy and job debates

Australia is seeing a surge in data centre construction driven by the AI boom, with about 90 proposed projects and existing facilities already using 2% of national electricity—a share projected to rise to 6% by 2030. The federal 2025 AI plan highlights high‑value job creation, yet critics warn about the substantial electricity, water and cost‑of‑living impacts of AI‑intensive facilities such as the planned Firmus centres in Tasmania.

Malaysia is undergoing its own data centre expansion, approving 143 projects worth RM144.4 billion between 2021 and mid‑2025, largely in Johor. Global hyperscalers have committed roughly RM69 billion, while local contractors gain high‑value work and an anticipated sector output of RM139 billion per year by 2030, creating about 30,900 jobs. Environmental concerns focus on potential water and electricity demand; applications total 11,000 MW, but actual consumption is expected to stay around 5,000 MW by 2035, and tariff reforms aim to shield households from higher bills.