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How AI is Draining Australia’s Green Power

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Date Published
27 Jan 2026
Priority Score
3
Australian
Yes
Created
26 Jan 2026, 09:30 pm

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Australia’s AI push is colliding with the energy transition. What that means for emissions, our power grid and plans to export clean energy.

Summary

The increasing establishment of data centers by major tech companies in Australia is raising concerns about the pressure on the country's renewable energy resources. The article highlights the competition between the expansion of AI capabilities and Australia's ambitions to export renewable energy, demonstrating a vivid conflict between technological advancement and sustainable practices. This development has significant implications for Australia's carbon emissions and power grid stability, showcasing a critical intersection of AI growth and energy policy. This topic is particularly relevant as it underscores the tensions between AI infrastructure demands and the sustainability of green energy initiatives, crucial for both domestic policy and international environmental commitments.

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AdvertisementPodcastHow AI is draining Australia’s green power7am PodcastJan 27, 2026, updated Jan 27, 2026 ShareAppleSpotifyIn 2019, a new venture in the Australian outback looked set to export our solar power to the world – upending our neighbours’ reliance on fossil fuels.Backed by the billionaires Mike Cannon-Brookes and Andrew Forrest – Sun Cable was supposed to be Australia’s largest ever renewable energy project, transporting electricity to Singapore via 4,300 kilometres of sea cable.It was meant to show what a different future could look like – one where Australia could export massive amounts of renewable power. But now, that future is being overtaken by something else entirely.As big tech converges on Australia to build data centres for AI, there’s a fight over how to use our renewable energy – and big tech is winning.Today, writer and senior research associate with the Australia Institute, Ketan Joshi, on how Australia’s AI push is colliding with the energy transition — and what it means for our emissions, our power grid, and the dream of becoming a clean energy exporter.If you enjoy 7am, the best way you can support us is by making a contribution at 7ampodcast.com.au/support.Socials: Stay in touch with us on InstagramGuest: Senior Research Associate with the Australia Institute, Ketan JoshiTopics: 7am, Artificial Intelligence, renewable energy Share Follow The New DailyAdvertisementMore Podcast >PodcastHow AI is draining Australia’s green powerPodcastThe frontline of Australia’s family violence crisisAustralian PoliticsThe ‘messy couple’ that was the CoalitionPodcastIs Trump’s ‘Board of Peace’ a power grab?Australian PoliticsHow hate speech blew up the CoalitionPodcastHow Elon Musk’s Grok started undressing childrenNationalWhy Australia has more guns than everPodcastThe AFP’s secretive new anti-protest commandArtsInside Creative Australia’s decision to drop Sabsabi