Category: 3. Business

Datacentre power demand in Australia could triple in five years and is forecast to exceed by 2030 the energy used by electric vehicles.

Datacentres now draw about 2% of electricity from the National Grid, about 4 terawatt hours of power. The Australian Energy Market Operator (Aemo) expects that share to rise rapidly – growing 25% year-on-year – to reach 12TWh, or 6% of grid demand, by 2030, and 12% by 2050.

Rapid growth of the industry will drive “substantial increases in electricity consumption, for Sydney and Melbourne, in particular”, Aemo forecasts.

In New South Wales and Victoria, where most are located, datacentres could comprise 11% and 8% of each state’s electricity demand, respectively, by 2030.

Technology companies including OpenAI and SunCable are pushing for Australia to become a hub for data processing and storage. Last month the Victorian state government announced a “$5.5m investment to become Australia’s datacentre capital”.

But with 260 centres operating nationally, and dozens more in the offing, experts are flagging concerns about what the industry’s unfettered growth could mean for the energy transition and climate targets.

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Energy use equivalent to 100,000 households

Banks of servers running 24/7 in a confined space generate massive amounts of heat and require electricity to run and cool them.

Datacentre demand globally is growing four times faster than all other sectors, according to the International Energy Agency. Centres are multiplying and are increasing in size, with hyperscale facilities becoming more common.

According to the IEA: “A hyperscale, AI-focused datacentre can have a capacity of 100MW or more, consuming as much electricity annually as 100,000 households.”

The consumption of electricity and water is largely related to cooling, as servers, like other computing devices, convert electrical energy into heat, according to Prof Michael Brear, a professor of mechanical engineering and director of the Net Zero Australia project at the University of Melbourne.

“When you have a very large number of computers in a confined space, you need to air condition the space to maintain these devices at a safe and efficient working temperature,” he says.

Most digital infrastructure is cooled using air conditioning or water.

Ketan Joshi, an Oslo-based climate analyst associated with the Australia Institute, says many technology companies are now reporting accelerating power consumption year-on-year. The intensity of energy use is also rising against multiple metrics – energy per active user, per unit of revenue – compared with five years ago, he says.

“They’re not using more energy to serve more people or to make more money,” he says. “The question that everybody should be asking is why are you consuming more energy?”

In the absence of concrete data, Joshi says the most reasonable assumption is that the uptick in demand is being fuelled by the widespread adoption of energy-hungry generative AI systems.

‘Running harder to stay in the same spot’

Joshi, who has been tracking the issue globally, says datacentres are large, inflexible loads on the power grid which have two clear impacts: they increase reliance on coal and gas generation, and they siphon resources away from the energy transition.

Datacentre companies often claim they run on clean energy by investing in solar or windfarms, but Joshi says there is often a mismatch between their near-constant draw on the grid and the generation profile of renewable energy.

“What is the net effect on the power grid?” he asks. “Well, sometimes you’re going to have a surplus of energy, and sometimes you’re going to have not enough.

“So, even though on paper it all kind of works out, there are some times when that datacentre is actually helping fossil fuels to be dispatched.”

And, instead of the new renewables eating into the share of coal and gas, these generators are serving the growing needs of datacentres, Joshi says: “It’s like running harder just to stay in the same spot because the treadmill is getting quicker.”

The electricity demands are so great that some companies have paid to restart mothballed US nuclear power stations, and demand for gas turbines has increased. Some developers in Australia have proposed installing new gas generators to service their needs.

According to Aemo’s forecasts, by 2035 datacentres could consume 21.4TWh, an amount just shy of the annual consumption of Australia’s four aluminium smelters.

It is still early days in the uptake of AI, Brear says, and at this stage the outlook is uncertain, reflected in Aemo’s scenarios for energy consumption in 2035 ranging from 12TWh to 24TWh. “It may not be that these grow as large as some people are predicting,” he says.

In its national AI plan, released on Tuesday, the federal government acknowledged the need to expand new energy and cooling technologies for AI systems. The minister for industry, Tim Ayres, said the government would set out data centre principles in early 2026, pledging that “key co-requisites for data centre investment will include additional investment in renewable energy generation and water sustainability”.

‘An undeniable impact’ on power prices

Dr Dylan McConnell, an energy systems researcher at the University of New South Wales, says renewable energy is growing in Australia but not yet at the rate required to meet renewable energy and emissions targets. Datacentre growth would add to the challenge.

“If we are in a situation where demand is growing much faster than anticipated and renewables don’t keep up, then actually what we end up doing is just powering that new demand and not displacing coal,” he says.

Unlike electric vehicles, which create additional demands on the grid while reducing petrol and diesel consumption, datacentres will not reduce fossil fuel use in other parts of the economy, according to McConnell.

“If this demand eventuates, it will make our emissions objective – and our ability to close coal on schedules that align with the emissions targets – very difficult, if not impossible,” he says.

The Climate Change Authority, in its advice on climate targets, says: “Datacentres will also be built at increasingly large scales and capacity, compounding pressure on regional power sources and placing additional pressure on the renewables buildout.”

There will be an undeniable impact on the overall cost of energy, which will flow through to power prices, McConnell says.

“You need to build a bigger system to serve this load, and that will mean more expensive resources are used.”

Ads for Nike, Superdry and Lacoste have been banned in the UK for misleading consumers about the environmental sustainability credentials of their products.

The Advertising Standards Authority (ASA) said paid-for Google ads run by all three retailers used terms such as “sustainable”, “sustainable materials” or “sustainable style” without providing evidence proving the green claims.

Nike’s ad, for tennis polo shirts, referred to “sustainable materials”. The company said the promotion was “framed in general terms” and argued consumers would interpret it as referring to some, but not all, products offered.

Similarly, Superdry, which urged consumers to “unlock a wardrobe that combines style and sustainability”, said the purpose of the ad was to highlight that it manufactured, sourced and sold a wide range of products that have “sustainability attributes and credentials”.

Lacoste, promoting sustainable kids clothing, said it had been working for several years to reduce the carbon footprint of all its products, but admitted that claims such as “green”, “sustainable” and “eco-friendly” were “very difficult to substantiate”.

The ASA said the UK code of advertising states that environmental claims must be clear and “supported by a high level of substantiation”.

It said that in each case the retailers’ use of the phrase “sustainable” was without any additional information, making the claim “ambiguous and unclear”.

“The claim was absolute and therefore a high level of substantiation in support needed to be produced,” the watchdog said. “We had not seen evidence to support it. We therefore concluded the ad was likely to mislead.”

The ASA also pointed to a lack of evidence to show the products were not detrimental to the environment when their whole life cycle was taken into account.

It banned each of the ads and told the retailers to “ensure that the basis of future environmental claims, and their meaning, was made clear, and that a high level of substantiation must be held to support absolute claims”.

Separately, the ASA also banned an ad for gambling firm Betway featuring Formula One star Sir Lewis Hamilton because it was likely to appeal to under-18s.

The paid-for Facebook ad, which ran before the British Grand Prix at Silverstone in July, featured a video of three Formula One drivers standing in a grandstand watching a race with their backs to the viewer, with Hamilton’s name written on the back of his red driver’s uniform.

A complainant challenged whether the use of Hamilton broke UK ad rules, which do not allow celebrities who are likely to be of strong appeal to under-18s to appear in gambling ads.

Betway did not dispute that Hamilton has a strong appeal to under-18s, but claimed the way he was presented in the ad limited that appeal because it did not show his face or frontal view.

The ASA said consumers, including those aged under 18, would have clearly recognised the figure as being Hamilton, concluding that the ad was “irresponsible and breached the code”.

NEW YORK, Dec 2 (Reuters) – An audit of the Ben & Jerry’s Foundation, a U.S.-based non-profit solely funded by the brand, found that it had deficiencies in financial controls and governance, according to Magnum, the Unilever unit set to be spun off next week that will own the ice-cream maker.

The audit also found deficiencies in other compliance policies such as conflicts of interest, according to the statement from the Magnum Ice Cream Co, an independent unit of Unilever.

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Magnum conducted the audit as a matter of good governance in preparation for the upcoming spin-off, it said.

A Unilever spokesperson echoed those reasons in a comment to Reuters, adding that Magnum is “taking appropriate steps” in response to the findings.

Ben & Jerry’s and the foundation did not respond to requests for comment, but its co-founder Ben Cohen said in October that he expects the conflict between the brand and its new owner to grow after the spin-off.

Magnum did not make public the details of its findings but said it has shared them with the Ben & Jerry’s Foundation and is trying to work with them on strengthening corporate governance by adopting a code of ethics, conflict-of-interest policy, term limits for trustees and due diligence and financial controls on grants.

Magnum said the trustees have not fully addressed the deficiencies. The Unilever subsidiary shared the statement in response to Reuters’ questions about the audit.

The trustees signed a code of ethics in recent weeks, according to two sources familiar with the matter, who asked not to be identified because they were not authorized to speak to the media. The sources added the audit did not find wrongdoing, ethical malpractice or violations.

Ben & Jerry’s annual revenue of 1.1 billion euros ($1.28 billion) accounts for almost 14% of Magnum’s global turnover, compared to just 1.8% of Unilever.

Ben & Jerry’s co-founder Jerry Greenfield, who resigned as a “brand ambassador” earlier this year, is stepping down as trustee from the foundation, the sources said. Greenfield did not respond to a Reuters request for comment.

LONG-LASTING FEUD

Ben & Jerry’s secured substantial leeway in its 2000 merger with Unilever that others who have sold to big corporations have not enjoyed, including an independent board.

The agreement also preserved the foundation, set up in 1985. It uses contributions from Ben & Jerry’s to make donations to other non-profit organizations focused on issues ranging from racial equity to environmental protection.

But the relationship soured in 2021, when Ben & Jerry’s said it would stop selling in the Israeli-occupied West Bank, which had financial consequences for Unilever as investors supporting Israel pulled out of the global consumer goods conglomerate.

The Ben & Jerry’s independent board has sued Unilever twice, most recently accusing its corporate parent of wrongfully muzzling it over statements it wanted to make on Gaza; Unilever has said the brand has evolved into one-sided advocacy on controversial topics.

Cohen has launched an effort to buy back the brand; Magnum has said the unit is not for sale.

He has said Magnum is censoring Ben & Jerry’s ability to speak out on progressive causes like Palestinian rights and U.S. immigration, a claim Magnum denies.

In a draft prospectus for its public listing, Magnum warned that actions by Ben & Jerry’s could result in reputational damage, boycotts or investor claims.

(This story has been refiled to fix a typo in paragraph 10)

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Each year, SpaceNews selects the people, programs and technologies that have most influenced the direction of the space industry in the past year. Started in 2017, our annual celebration recognizes outsized achievements in a business in which no ambition feels unattainable. This year’s winners of the 8th annual SpaceNews Icon Awards were announced and celebrated at a Dec. 2 ceremony hosted at the Johns Hopkins University Bloomberg Center in Washington, D.C. Congratulations to all of the winners and finalists.

In 2018, the first Trump administration directed the development of a civil space traffic management system led by the Department of Commerce, taking over work that had for years been handled by the Defense Department. In 2025, that effort reached the finish line following years of procedural and financial challenges. It came even as the second Trump administration proposed canceling the program instead.

The development of the Traffic Coordination System for Space, or TraCSS, got off to a slow start because of a lack of funding from Congress and skepticism that the Commerce Department was the best place to handle space traffic coordination. A 2020 report by the National Academy of Public Administration, concluded Commerce was the best agency for the job rather than NASA or the FAA. But it wasn’t until fiscal year 2023 that the Office of Space Commerce received the budget increase it needed to accelerate work on TraCSS.

Once funding started, the office moved quickly to scale up and start putting TraCSS together. Leaders took on an agile development approach commonly used in software development to TraCSS, focusing first on making a basic “minimum viable product” and then incorporating new features and changes based on feedback.

Besides the technical work needed to set up TraCSS, the Office of Space Commerce also had to build up relationships with the Space Force, which would be supplying the data for the system, as well as with companies that could also offer data and services. That included making sure that the basic and free space safety services that TraCSS would offer, such as notices of potential collisions, did not compete with more advanced offerings from those companies.

In September 2024, the office started phase 1.0 of TraCSS, a beta test involving several satellite operators. Over time, more companies joined the test, including SpaceX, by far the largest satellite operator in the world with its Starlink constellation. The office started adding features to TraCSS in preparation for entering full service in early 2026.

All that has taken place despite political headwinds in the last year. A move by the Commerce Department to lay off probationary, or new, employees in February temporarily included the TraCSS program manager, Dmitry Poisik, until he was brought back several days later. The fiscal year 2026 budget proposal for NOAA, which includes the Office of Space Commerce, proposed terminating TraCSS entirely, arguing private companies could handle the work.

The commercial space industry has rallied behind TraCSS, saying it is essential to safe space operations. House and Senate appropriations bills would restore some of TraCSS budget. That’s enough, Poisik said in August, to do the “basic mission” of TraCSS, which has become more essential as the number of satellites in orbit grows.

This article first appeared in the December 2025 issue of SpaceNews Magazine.

Related

The federal government released its National AI Strategy this week, confirming it has dropped its earlier proposal for mandatory guardrails for high-risk artificial intelligence (AI).

In responding to AI, the government has found itself caught between the unions, which have pushed for stricter regulation to protect workers and their jobs, and business wanting a “light-touch” approach to AI.

To talk about how the government will keep up with effectively managing AI, as well as a long-overdue response to a “jobs for mates” review, we’re joined by the minister for industry, innovation and science, Tim Ayres.

On the government’s decision not to introduce AI-specific laws, Ayres denies the Albanese government ended up going with a “light-touch” approach.

It’s a pragmatic Australian approach that’s about the circumstances that Australia is in, in strategic terms and economic terms. We’ve got an existing regulatory framework now. Australian law applies now.

The [new] AI Safety Institute is about making sure that we support our regulators. Advised, of course, by the best advice, whether it’s in the intelligence communities or security agencies, engaging with the trade union movement and civil society, getting the best advice to make sure that we’re uplifting government capability to analyse threats, to get into the new AI models and make sure that we’ve tested them properly, and supporting government capability across the board.

On whether the rollout of AI will lead to some mistakes as Australian workers and industry get used to the technology, Ayers acknowledges there will be some “bumps”:

I don’t want to be glib about that, but I do think that’s true […] that of course big social and technological changes are rarely free of bumps and glitches. We’re really keenly aware in the government of the human challenges here.

And that’s why I just keep emphasising getting people together and having Australians and Australian institutions working together for a better deal is much better than standing back and letting these developments flow without us rolling our sleeves up and getting involved.

Drawing on examples he’s seen in his role as minister for science, Ayres says AI had could deliver real benefits for Australians over the next five to ten years.

[For example], the capacity of artificial intelligence to dramatically speed up pharmaceutical design so that we get more drugs, more targeted design developed in Australia into pharmacies to support Australians’ health, cancer treatment designs, composite material design. And in the energy sector, being able to […] smartly manage the energy grid so that we can expand renewables and expand electricity capability. There there is almost no area of technological improvement that won’t be touched by artificial intelligence.

But with that rapid expansion comes real costs, including the vast amounts of electricity and water data centres consume.

Ayres said he’ll resume working with state and territory governments on developing “data centre principles” very early next year. The Sydney Morning Herald and others have reported that the government is weighing up making new data centres invest in big wind and solar projects or else build their own batteries on-site.

Ayres says if data centres and new digital infrastructure end up paying for new generation and transmission capability, “that’s a net addition to the electricity system, not a drain on resources”.

Microsoft’s […] recent investment in Australia has been has underpinned and underwritten the development of a massive 300 megawatt solar farm north of Albury at Walla Walla. There are opportunities here if we have a planned approach to make sure that this supports development in the electricity system.

Following week’s release of the review into “jobs for mates” – which the government held onto for two years and now declines to accept all recommendations – Ayres argues Labor “done has a lot to restore integrity” since being elected in 2022.

I think what we saw was the previous government so debauched the process that Australians lost confidence in the appointments process. Now we’ve done a lot to restore integrity and a sense of purpose to these appointments.

[…] The rules that [finance minister] Katy Gallagher’s announced and that the government’s adopted today go a long way towards restoring public confidence. But of course, as every as every day goes on, we will continue to demonstrate that we actually take our responsibility in this area seriously and that our appointments reflect the public interest.

Read more:
Albanese government shies away from tougher recommendations from ‘jobs for mates’ inquiry

What is the Focus of Hyundai’s Maritime Fuel Cell System Collaboration?

Under the MoU, the consortium will develop and demonstrate a maritime fuel cell system for mid- to large-scale liquefied hydrogen carriers. The key development goals include:

• Hyundai Motor Company plans to develop a fuel cell system optimized for marine applications based on its existing fuel cell technology.
• HD KSOE will carry out the integrated design of a hybrid electric propulsion system consisting of a hydrogen dual fuel engine and Hyundai Motor Company’s maritime hydrogen fuel cell.
• PNU will conduct evaluation and demonstration of the system designed by HD KSOE.

Why is Hyundai’s Propulsion System Collaboration Significant?

The MoU paves the way for Hyundai Motor’s expansion into the maritime hydrogen fuel cell market. This partnership builds on Hyundai Motor’s established strength in hydrogen technology as the company takes its first step into the maritime sector, advancing cleaner and more sustainable marine mobility.

What are the Goals of Hyundai’s Propulsion System Collaboration?

The goal of this collaboration is to develop propulsion systems for the future shipping market that aligns with the carbon reduction targets set by the IMO. By adapting Hyundai Motor’s proven fuel cell technology for potential maritime applications, this partnership seeks to deliver practical hybrid propulsion solutions that help reduce emissions and support more sustainable shipping practices.

By collaborating with HD KSOE, one of the world’s top shipbuilders, Hyundai Motor can:

• Establish a technical foundation for the maritime fuel cell system.
• Gain valuable market references through mid- to large-scale projects.
• Strengthen its position in the burgeoning hydrogen economy.

How Does the Collaboration Project Fit with Hyundai’s Vision?

This partnership reflects Hyundai Motor’s vision of ‘Progress for Humanity’ as it works toward cleaner mobility solutions. By combining expertise across industries and leveraging Hyundai Motor Group’s HTWO hydrogen brand and business platform, the MoU creates opportunities for future collaboration with governments, industry stakeholders, and shipping companies to support efforts that reduce emissions in maritime operations.

In the Cape York community of Wujal Wujal, local service providers used to hold their breath every time a big storm rolled in. Cloud cover could knock out their satellite internet just when they needed it most.

Since installing Starlink’s low Earth orbit (LEO) satellite service, however, everything from video calls to uploading files has become far more reliable – even in heavy rain. People report there is now no lag, whereas with the previous service, Sky Muster, even cloud cover could cause the internet to stop working.

Reliable connectivity is crucial in an emergency. When nearly half the buildings in Wujal Wujal were destroyed by the December 2023 flood following Cyclone Jasper, and the fibre-optic cable was broken, Starlink provided the only reliable communications in the aftermath.

Examples like this help explain why Starlink has grown so quickly in remote Australia. With high speeds, low latency and data that works in wet weather, it has become the preferred option for agencies and businesses frustrated with older technologies. There are now more than 200,000 Starlink subscriptions in Australia, compared with about 80,000 NBN Sky Muster services.

But our research as part of the Mapping the Digital Gap project shows Starlink is creating a new kind of digital divide in remote First Nations communities – not just between cities and the bush, but within communities themselves. A small minority now enjoy fast, reliable Starlink, while First Nations households predominantly use prepaid mobile services, where mobile is available, with high-priced but limited data.

Twice the rate of digital exclusion – and worse in remote communities

The new Mapping the Digital Gap 2025 outcomes report finds First Nations Australians are twice as likely as other Australians to be digitally excluded.

Nationally, using the Australian Digital Inclusion Index measure out of 100, First Nations score on average 63.4, where non–First Nations Australians average 73.9 – a “digital gap” of 10.5 points. In the very remote communities we visited, this gap more than doubles to 24.2, with three in four people digitally excluded.

Access to reliable and affordable connectivity and devices is the biggest driver. Access scores in very remote First Nations communities sit 42.4 points below those of non-First Nations Australians – far larger than gaps for affordability or digital ability.

There is some good news. Digital ability has improved by nearly nine points in two years, and daily internet use has risen from 44% to 62%. But this still lags far behind other Australians, 95% of whom go online daily.

In short, people are trying harder than ever to get online – but face barriers of infrastructure, pricing and limited digital support.

Starlink for agencies, prepaid mobiles for everyone else

Starlink arrived in northern Australia in late 2022 and spread quickly across our research sites. Schools, councils, health services and police adopted it to get around mobile congestion and weather-related dropouts.

As one coordinator in Wadeye said, “We used to just stop working at three … 1764719613 we’ve all been Elon Musked.”

The rapid uptake shows remote communities are often early adopters. In Wilcannia, café owner Shona Cook says they “went straight to Starlink because we know that it works out in regional areas […] everything you need” now runs on it.

But Starlink remains out of reach for most First Nations households. Across sites such as Wilcannia and Wujal Wujal, only 1–2% had adopted it by 2024. Upfront equipment costs of A$500 to A$600 and monthly fees of A$139 are simply unaffordable.

Instead, nearly everyone relies on mobile phones. In 2024, 99% of First Nations mobile users in remote communities were on prepaid plans.

Many households reported spending more than A$280 a month on data, with large households often exceeding A$400 – for slow speeds, data limits and patchy coverage. Those spending the most, relative to income, often get the worst internet.

A new ‘elite’ infrastructure

This pattern is creating a localised divide. Agencies, contractors and a few higher-income residents enjoy fast Starlink. At the same time, most others are left with congested 4G, legacy satellite services and costly, limited prepaid data.

One Wilcannia resident can now send “massive files within two minutes” and stream reliably, but said: “If there was a cheaper way […] we’d definitely look at that.”

Without intervention, Starlink risks becoming “elite” infrastructure: a premium service for those who can pay, while others juggle multiple prepaid services, share phones, and sacrifice speed and reliability just to stay connected.

How to make Starlink part of the solution

Other low Earth orbit satellite internet businesses are entering the market, too. From 2026, the NBN will be using Amazon’s satellites, and Telstra is providing Starlink services and small-cell mobile services via OneWeb. These may improve reliability, but risk widening the divide if plans aren’t affordable.

The best way to avoid this is policies that treat connectivity as an essential service and design solutions around the realities of remote First Nations households. That could include:

• targeted subsidies or concessional plans for low-income households

• prepaid-style broadband products

• community-based access models, such as mesh Wi-Fi or shared infrastructure

• ongoing digital skills support within community organisations.

The new First Nations Digital Inclusion Dashboard gives communities and policymakers a powerful tool to track progress and push for change.

Closing the Gap Target 17 aims for equal digital inclusion by 2026. Starlink and other low Earth orbit services could play a transformative role – but only if the benefits are shared equitably, not reserved for the few who can pay.