Australia data centre firm reports rising water, energy use

External photo of the NEXTDC M2 Melbourne Data Centre with blue sky overhead
NEXTDC's M2 Melbourne Data Centre (Image: NEXTDC)

Australian data centre firm NextDC has reported increased water and energy consumption for the third year in a row, according to a report from Reuters.

The company’s ‌water usage effectiveness (WUE) ratio rise to 2.40L per kilowatt-hour in the year to June, up from 2.25L per kilowatt-hour the previous year, while its power usage effectiveness (PUE) ratio rose to 1.49 from 1.44.

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This is the third consecutive year in a row the company has reported an increase across both metrics.

NextDC said the higher water ​consumption during the year reflected a combination of portfolio growth and increased activity across operational, expansion, and commissioning projects.

It also said the yearly figures “​involved significant reconciliation and validation of water data, including investigation of isolated leaks, utility ​meter anomalies, and differences between site and utility records”.

At the same time, the company revealed a ⁠revenue increase of 16% and a profit of $82.1 million for the year. ​

Australia is in the process of developing a set of nationally mandated standards for data centres, with Energy and Climate Change Minister Chris Bowen recently announcing the federal government would “legislate binding national standards for data centres across the country without exception, which will require 100% renewables backed by firming”.

Bowen’s announcement was welcomed by the Climate Council.

“Australians are looking to governments to get this right. There’s a lot on the line—our energy security, the price of power, and how much harmful climate pollution we lock in,” Climate Council CEO Amanda McKenzie said.

“People expect a fair dinkum deal, not a dud one that puts the interests of industry and big tech first. Renewable energy is already the cheapest and fastest option to build, so this is a question of whether data centres bring genuinely new clean energy with them, or soak up capacity the rest of us need.

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“Clear and consistent national standards that deliver additional renewable energy, without any exceptions, is the only way to avoid higher power prices and pollution.”

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