Australia’s AI data‑centre boom sparks community and power‑grid concerns

A 7NEWS Spotlight investigation highlights the rapid expansion of large‑scale data centres—dubbed “AI factories”—across Australia. Around 160 facilities are already operating, with another 90 under construction or proposed, many located near residential areas such as the Southern Highlands near Moss Vale, where farmer Ross Murphy worries about emissions and water use.

Industry leaders argue the sites are essential for the digital economy, powering services from streaming to AI prompts, while current consumption accounts for roughly 2 % of the nation’s electricity. Projections suggest this could rise to 6 % by 2030 and up to 15 % by 2040, prompting experts to warn that Australia’s power and water infrastructure is not yet prepared. The report also compares Australia’s growth to the data‑centre hub in Virginia, USA, underscoring the tension between economic opportunity and community and environmental impacts.