AI Data Centres to Consume 8 Percent of Australia’s Electricity in 5 Years: Deloitte

Australia’s data centres are driving up electricity demand, pushing the tech sector to confront sustainability pressures while navigating risks from AI and digi

Signage of an AI data center is displayed during the Mobile World Congress in Barcelona, Spain, on March 3, 2025. Josep Lago/AFP via Getty Images

AI data centres are expected to consume 8 percent of Australia’s national electricity supply by 2030, an increase from the current 5 percent this year, according to Deloitte’s Australian TMT (Technology, Media, and Telco) Predictions 2025.

As AI becomes more powerful, its energy use is also growing, causing strain on energy grids and operators.

Deloitte’s forecast is in line with the previous findings from Ascelin Gordon, a senior lecturer at RMIT University, who estimated data centres currently consume 1 to 3 percent of electricity globally.

Gordon earlier predicted that Australian data centre energy usage could reach 8-15 percent by 2030.

In a bid to address environmental concerns, Deloitte said that 90 percent of data centres built in 2025 are expected to have a five-star environmental rating from the National Australian Built Environment Rating System (NABERS).

Further, they will need to cut emissions under Scope 2 requirements by using liquid cooling, which will result in up to 10 percent in energy savings.

“The 2025 TMT Predictions show we are at a pivotal moment where the choices we make today will have a significant impact on the future of the sector,” said Bec McConnochie, Deloitte Australia’s national industry sector lead.

“This presents a unique opportunity for us to make sure that future is based on trust, inclusivity, and sustainability so that industry advancements not only benefit the current generation, but all those who follow.”

However, other challenges remain.

Deepfake attacks are expected to double in 2025, affecting over 40 percent of Australian businesses, with 9 out of 10 harassment cases targeting women.

Generative AI Adoption Slower Than Expected, But Smartphone Tech Accelerates

While global excitement around generative AI is strong, Australian businesses are taking a cautious approach to deploying generative AI agents.

Despite the potential to boost productivity across manufacturing, retail, healthcare, and professional services, investment in local AI startups is projected to stay modest—under $50 million in 2025.

Smartphone trends tell a slightly more different story.

More than half of smartphones in Australia will be AI-enabled this year, driven by Apple’s dominance of the local premium market with a 55 percent share, compared to 25 percent globally.

The emergence of AI-enabled smartphones will lead to longer device upgrade cycles and premium phones being replaced every four years, six months later than in 2023.

AI could also play a role in content creation but intellectual property issues will limit this trend.

The Subscription Video on Demand (SVOD) industry is stabilising, but 75 percent of consumers are dealing with cost of living pressures, which is reshaping the landscape.

Growth in Sports Infrastructure and Telco Cooperation Points to New Opportunities

Deloitte also predicted new growth areas in the technology and media field.

Investment in Australian sports infrastructure is projected to hit $1.2 billion over the next three years, and the number of stadiums offering 5G services has doubled to six in 2025.

Telecommunications companies are pursuing network sharing agreements, leading to the construction of 300 new 5G sites in 2025. This collaboration could reduce infrastructure costs by as much as 30 percent, while also improving coverage for Australian consumers.

“As we move into the next phase of digital evolution, the most resilient companies will be those that can cut through complexity, spot signals early, and move with intent. The best way to navigate uncertainty is not to wait—but to prepare,” said Peter Corbett, Deloitte Australia’s lead partner of Telecommunications, Media and Technology.