Amazon has announced a substantial investment of AU$20 billion to develop data centre infrastructure in Australia, aiming to power these facilities with renewable energy sources, specifically utility-scale solar photovoltaic (PV) systems and wind power. While the exact number of data centres to be established remains undisclosed, the company has entered into power purchase agreements (PPAs) with European Energy, a Danish renewable energy firm, to secure energy from three solar PV projects in Australia.
These agreements total over 170 megawatts (MW) of energy from projects that include the operational 58 MW Mokoan Solar Park in Victoria, and two additional projects currently in the pre-construction phase: the 150 MW Winton North Solar Park, also in Victoria, and the 125 MW Bullyard Solar Park in Queensland. When completed, these projects will contribute a combined solar PV generation capacity of 333 MW.
Jens-Peter Zink, the deputy CEO of European Energy, expressed optimism about the partnership, noting the company’s expanding operations in Australia. “Our Australian operations are just ramping up, and we are delighted to be able to deliver this scale of renewable energy to our partners,” Zink stated.
The increase in data centres and advancements in artificial intelligence (AI) are expected to drive significant growth in energy demand in the coming years. A report by the International Energy Agency (IEA) predicts that global electricity demand from data centres will more than double by 2030, exceeding 945 terawatt-hours (TWh) annually. This surge will largely stem from the rising energy needs of AI-optimized data centres, which are expected to quadruple their consumption in the same timeframe.
Amazon has been a prominent global buyer of renewable energy, focusing on decarbonizing its operations while ensuring a steady supply of affordable electricity for its data centres and technological functions. In 2023 alone, the company added over 1 gigawatt (GW) of solar and wind capacity to its European operations. Additionally, Amazon has invested in eight renewable energy projects across New South Wales, Queensland, and Victoria to support its Australian operations, including data centres and fulfilment centres.
Matt Garman, CEO of Amazon Web Services (AWS), emphasized the importance of this investment for Australia’s economic future, particularly in relation to AI. “We’re proud to be expanding our world-class data centre infrastructure, bringing more renewable energy projects online, and supporting the country’s vision to be a global AI leader,” Garman stated. “AI is a once-in-a-generation transformation, and Amazon is pleased to empower all Australians to innovate at scale through this investment.”
Amazon’s initiatives align with broader industry trends. In 2022, Microsoft secured a 15-year PPA with Fotowatio Renewable Ventures (FRV) Australia for a 353 MW solar PV power plant in New South Wales, aimed at powering its data centres in the region.
As the demand for renewable energy grows alongside the expansion of data centres, Amazon’s investment in solar power reflects a strategic move to enhance its energy portfolio while contributing to Australia’s renewable energy landscape.
