Digital retrofits driving a new era of sustainable buildings

In the race to reach net zero, the buildings we live and work in are playing a far more pivotal role than many realise. Globally, the built environment accounts for around 34% of total carbon emissions and a comparable share of energy use — figures that have proven difficult to reduce, even as renewable energy capacity continues to grow.

Australia’s own landscape mirrors this global reality. The country’s buildings are responsible for over a quarter of national emissions, making them a clear target for impactful, low-cost decarbonisation. Whether it’s tightening performance codes, city-led net-zero pledges, or shifting investor and tenant expectations, the pressure to upgrade is rising. So too is the opportunity to act.

The power of working with what we’ve got

New buildings will play their part, but many of the structures that will still be occupied in 2050 are already standing. Retrofitting these existing assets is one of the fastest, most effective ways to make a difference. A standout example can be found in Adelaide, where the 1987-built Riverside Centre has been transformed into an award-winning carbon-neutral asset — without starting from scratch.

Delivered in partnership with Siemens, the Riverside upgrade involved smart digital modelling, a new Desigo CC building management overlay, lift modernisation, rooftop solar, and a live connection to Siemens’ remote digital services hub in Melbourne.

“We look at the building, digitalise the information and work out what technology needs to be replaced,” said Peter Halliday, CEO of Siemens Australia & NZ. “Just utilising the technology available today, and digitalising, actually achieves fantastic results.”

For Vishant Narayan, Managing Director of Ashbridge Capital — the fund manager behind the building — it’s about making tangible progress in an area that’s often overlooked.

“We’re extremely proud of the fact that this building is now carbon-neutral,” he said. “Buildings produce 40% of carbon emissions globally, and — as a landlord — the greatest impact I can have is to focus on the buildings we manage.”

The numbers make a strong case: Riverside has reduced its energy consumption by 40%, emissions by 67.5%, and electricity bills by half. The site now boasts a 5.5-star NABERS Energy rating and formal certification as carbon neutral.

Data as the new lever

Of course, retrofitting isn’t just about insulation and solar panels. Increasingly, building owners are exploring software-driven upgrades that mine real-time data from equipment and sensors to optimise performance. These digital overlays can be fast to deploy, low in capital cost, and incredibly effective in complex environments.

One of Australia’s most critical infrastructure operators, Telstra InfraCo, turned to this approach to improve performance across its network of telecom exchanges.

“Keeping these exchanges at an optimal temperature is paramount for us,” explained Dipan Patel, Digital Infrastructure Solutions Executive at Telstra InfraCo. “If we wanted to make a big impact on our goal of reducing emissions 70% by 2030, we had to find ways to make a much more efficient cooling system.”

The solution came via Siemens’ patented Demand Flow technology — a digital optimisation system for chilled-water plants that adjusts fan and pump speeds based on real-time demand, rather than fixed schedules.

“The implementation has resulted in energy savings of around 20%, or 4000 megawatt hours each year — equivalent to the electricity consumed by roughly 350 homes,” said Michael Williams, Product Engineering Principal at Telstra InfraCo. “And that’s while maintaining 24/7 reliability for critical infrastructure.”

Digital retrofits like this are relatively quick and cost-effective to deploy, but can stack with future electrification or renewable upgrades. Importantly, they also generate granular operational data, helping fuel the next wave of zero-carbon management.

Next-gen platforms for carbon-aware buildings

Many of these digital systems feed data into the cloud — and this aggregation is opening the door to even more advanced tools. Siemens’ Building X platform, recently named a market leader by smart building analyst Verdantix, brings together HVAC, lighting, security, EV chargers and onsite generation through a single interface.

By combining AI with digital twin modelling, Building X can anticipate occupancy patterns, schedule energy loads to coincide with periods of low grid-carbon intensity, and flag maintenance needs before they impact performance. It’s part of a shift toward real-time, portfolio-wide building management that responds to dynamic pricing and emissions signals — not just static annual targets.

It’s also a future that offers benefits beyond emissions: better comfort, healthier indoor environments, and operational resilience as regulatory requirements evolve.

Building momentum, sustainably

The Riverside project demonstrates that even buildings from the late 20th century can surpass today’s expectations when upgraded thoughtfully. Telstra’s telecom sites highlight the versatility of digital retrofits in high-reliability environments. And Building X signals the arrival of autonomous, AI-assisted operations that optimise for cost, comfort and carbon.

While retrofit solutions may deliver the fastest wins, Australia’s growing pipeline of new developments must also be part of the solution. Each new square metre must be designed with net-zero readiness from day one — embedding digital optimisation, grid flexibility, and energy efficiency as core principles.

For building owners, the message is clear: the tools and technology already exist, the business case stacks up, and the window for action is open — but narrowing. For Halliday, it’s a chance for Siemens to make a difference by doing what it does best.

“Australia contributes around 1% of global emissions. We believe we can do more than just helping reduce this — and aim for the most sustainable future possible,” he said. “Helping make our building stock energy efficient will be key to looking beyond that 1%.”

Image caption: Peter Halliday, Siemens; and Vishant Narayan, Ashbridge Capital at the Riverside Centre