Australia data centre firm NextDC reports rising water, energy use with profit beat
The NextDC S6 data centre stands in Sydney, Australia, June 22, 2026. REUTERS/Hollie Adams
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SYDNEY, Aug 28 : Australian data centre developer NextDC said water and energy consumption rose in the past year as demand for computing capacity drove profit ahead of forecasts, figures which may feed public disquiet about the AI boom’s draw on resources.
The company’s water usage effectiveness (WUE) ratio climbed to 2.40 litres per kilowatt-hour in the year to June, from 2.25 the prior year, while its power usage effectiveness (PUE) ratio, which measures how much electricity a data centre needs for cooling and other overheads, rose to 1.49 from 1.44. Both metrics have worsened for three consecutive years.
NextDC, whose rivals include Blackstone-owned AirTrunk and Infratil-owned CDC, attributed the rising ratios partly to newly commissioned capacity running cooling systems ahead of full IT deployment, as well as data-reconciliation work that uncovered leaks and meter anomalies.
“Higher water consumption during the year reflected a combination of portfolio growth and increased activity across operational, expansion and commissioning projects,” the company said in a sustainability report, published with its financial results late on Thursday.
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The year “also involved significant reconciliation and validation of water data, including investigation of isolated leaks, utility meter anomalies and differences between site and utility records”, it added.
The ratios are watched closely by lawmakers and their voters as proxies for the strain the data centre boom places on scarce grid and water resources.
A growing number of governments, regulators and cities around the world are moving to freeze, restrict or ban new data centre construction, as concerns mount over electricity costs, strained water supplies, land scarcity and the burden on local communities.
Canberra is weighing mandatory, nationally consistent standards governing data centres’ energy, water and location choices, and recently proposed that data centres must build new renewable sources of power rather than pulling electricity from the grid.
NextDC said revenue rose 16 per cent and the company swung to a profit of A$82.1 million $59.14 million) for the year to end-June, from a A$60.5 million loss a year earlier, helped by an accounting change that recognised a gain on the value of its properties. Underlying EBITDA rose 15 per cent to A$248.8 million, beating average analyst forecasts according to Visible Alpha.
Shares in NextDC were up 3.3 per cent by mid-session on Friday.
($1 = 1.3883 Australian dollars)
Source: Reuters
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