AI Boom Strains Water and Energy: NextDC Usage Climbs

NextDC, an Australian data centre developer, disclosed a rise in its water and energy consumption for the year ending June. The company's water usage effectiveness (WUE) ratio increased to 2.40 litres per kilowatt-hour, up from 2.25 the previous year. Similarly, its power usage effectiveness (PUE) ratio edged up to 1.49 from 1.44. These metrics have shown a worsening trend for three consecutive years.

Despite the increased resource draw, NextDC reported a significant financial turnaround, swinging to a profit of A$82.1 million from a loss of A$60.5 million a year prior. This performance beat analyst expectations, with revenue up 16%. The company cited portfolio growth and increased activity across operational, expansion, and commissioning projects for higher water consumption, also noting data reconciliation efforts that uncovered leaks.

These figures are released amid growing global scrutiny of data centres' impact on resources. Governments worldwide are considering or implementing restrictions on new data centre construction due to concerns about electricity costs, strained water supplies, and community impact. Australia, for instance, is evaluating mandatory standards for energy, water, and location choices for data centres, including proposals for new renewable power sources instead of grid electricity.