The Growing Energy Demand of Data Centres
Data centres are the backbone of the digital economy, powering everything from cloud computing to artificial intelligence. However, they are also some of the biggest consumers of electricity. In Australia alone, data centres account for an estimated 5% of the country’s total electricity use, a figure that could nearly double by 2030. As the demand for AI and digital services accelerates, the question arises: Can our energy system keep up?
A recent analysis from Morgan Stanley, featured in the Australian Financial Review, suggests that while Australia’s power grid can handle this surge in the short term, long-term sustainability will require significant changes. With coal-fired power plants scheduled to shut down by the end of the decade, the industry must accelerate its transition to renewable energy sources.
At Modulus, we recognise this challenge and are committed to energy-efficient and sustainable data centre operations. By implementing cutting-edge technology and partnering with renewable energy providers, we’re ensuring that the digital revolution doesn’t come at the expense of the environment.
Why energy efficiency matters
With data centres consuming more power than ever, efficiency isn’t just a cost-saving measure—it’s a necessity. Here’s why energy efficiency is critical for the future of the industry:
Grid reliability – A surge in data centre energy demand could strain the national electricity market. Efficient power usage helps stabilise the grid and ensures uninterrupted service.
Lower carbon footprint – Traditional energy sources, particularly coal, are being phased out. Without proper efficiency measures, the transition to renewables could be slower and more expensive.
Cost savings – Energy-efficient infrastructure reduces operational costs, allowing providers like Modulus to offer more competitive pricing while maintaining sustainability.
Regulatory compliance – Governments worldwide are tightening regulations on carbon emissions. Investing in efficiency ensures compliance with current and future standards.
How Modulus is Leading the Way in Energy Efficiency
At Modulus, we’ve made sustainability a core principle of our data centre operations. Here’s how we’re tackling the energy challenge:
Optimised cooling systems – Cooling accounts for a significant portion of data centre energy consumption. Modulus employs advanced cooling techniques, including liquid cooling and AI-driven temperature regulation, to minimise waste.
Renewable Energy Integration – We prioritise renewable energy sourcing, leveraging solar, wind, and hydroelectric power to reduce reliance on fossil fuels. Our commitment aligns with industry trends, where companies like AirTrunk and NextDC are leading the charge in renewable procurement.
AI-Driven Energy Management – Artificial intelligence plays a crucial role in reducing power consumption. Our systems continuously monitor and adjust energy usage in real time, optimising efficiency without compromising performance.
Efficient Hardware Utilisation – Traditional data centres often suffer from underutilised servers that still consume power. Modulus maximises hardware efficiency through virtualisation and workload balancing, ensuring that every watt of electricity is used effectively.
Sustainable Infrastructure – Our facilities are designed with energy-efficient materials and architectures, reducing overall power consumption while maintaining reliability and security.
The Future of Energy in Data Centres
While Australia’s grid may be able to handle the current surge in data centre power demand, long-term sustainability will require proactive measures. Countries like Singapore and Ireland have already faced challenges, with data centres consuming up to 18% of their total electricity supply, leading to restrictions on new developments.
To avoid similar issues in Australia, the industry must embrace:
🔸 More renewable energy projects to supplement the growing power needs.
🔸 Smarter grid management, with AI-driven solutions to optimise energy distribution.
🔸 Investment in sustainable cooling solutions to reduce water and electricity usage.
Modulus is already taking these steps to ensure our data centres remain efficient, sustainable, and future-proof. By focusing on energy efficiency today, we’re building a resilient and environmentally responsible digital infrastructure for tomorrow.
Final Thoughts
As data centres continue to grow, so does their responsibility to operate sustainably. With energy efficiency at the forefront of our strategy, Modulus is committed to minimising our environmental impact while delivering world-class digital infrastructure.
Want to learn more about our sustainability initiatives? Get in touch with us today.
