Data centres — a missed opportunity for sustainability
Data centres — the physical centres that house IT infrastructure like servers, storage systems and network equipment — have become the beating heart of the digital economy.
They power streaming services, and financial and government systems. Yet their rapid growth is creating mounting pressure on electricity grids, water resources and local communities.
An RMIT expert explains that although we are at a time-critical juncture point in planning for future needs, by working together with researchers, governments and industry, we can create a sustainable solution to benefit all.
Professor Priya Rajagopalan, director of the Post Carbon Research Centre for Infrastructure and the Built Environment, said the question is no longer whether we need data centres, but how we plan, locate and govern them to ensure their co-existence with communities.
“Data centres can become essential elements of broader master plan by integrating community spaces and nature-based solutions into their design.
“On top of grid energy, most data centres use onsite renewables, diesel or gas back-up generators as well as battery and thermal storage solutions. Large-scale renewable energy projects have the potential to supply green power; however, they are scarce in the city centre.
“Though data centres are often criticised for their limited local benefits, there is opportunity for them to become a significant resource for flexibility in energy and water. The unused power generated by their back-up generators and storage systems can be shared with the nearby communities. Cutting-edge water treatment systems, collection of rainwater and reuse of treated wastewater can increase the efficiency.
“In a dynamic energy system, forward-looking policies can steer the industry toward sustainability rather than crisis management. There are excellent opportunities for collaboration among federal, state and local governments, regulators, grid operators, water utilities, communities and other stakeholders to address these issues collectively.”
Professor Priya Rajagopalan presented on green data centres at Austrade’s Opportunities in Critical Technologies in Australia, 22 October 2025.
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