Transgrid forecasts data centre power demand to double at 3.5 gigawatts by 2035
Australia's major electricity transmission company predicts AI factory energy needs will reach 3.5 gigawatts, a figure double the official operator's forecast.
Transgrid has commissioned independent modelling indicating data centre power demand will be significantly higher than previous official projections. The company calculated peak demand at approximately 3.5 gigawatts by 2035. This figure represents double the equivalent peak demand included in the Australian Energy Market Operator's widely used 2026 scenario. AEMO's own high-growth sensitivity model shows annual consumption from these facilities could be roughly 55% higher than its step change forecast. The Baringa analysis utilized by Transgrid and other major energy providers notes uncertainty regarding the pace of industry development, with over a third of known projects cancelled since the last annual report. Despite acknowledging this volatility, Transgrid maintains that AI and data factories may constitute a larger drain on the grid than previously realized in its NSW and ACT assumptions.
