Australia grid constraints push data centers to regions

Share

From pv magazine Australia

Sydney-headquartered renewable energy land acquisition brokerage Rok Solid is seeing data centre operators moving to regional sites to develop off-grid solutions using gas and solar in a bid to avoid grid constraints.

Rok Solid founder Daniel Moroko said across Australia 78 data center projects are currently in development and 178 are already operating, resulting in grid access in major hubs becoming a major constraint.

Electricity demand from the sector is also growing faster than many local networks can accommodate putting data centre feasibility at risk with grid congestion, long connection lead times, and the cost of network upgrades in metropolitan hubs.

Want to learn more about matching renewables with data center demand?

Join us on April 22 for the 3rd SunRise Arabia Clean Energy Conference in Riyadh.

The event will spotlight how solar and energy storage solutions are driving sustainable and reliable infrastructure, with a particular focus on powering the country’s rapidly growing data center sector.

“Land is expensive, connection timelines are long, and power availability is limiting new projects,” Moroko said. “We’re getting consistent enquiries from data centre operators looking for sites where power generation can be integrated from day one, and they’re prioritizing access to gas and water over proximity to substations.”

Deeming the trend as a structural shift rather than a temporary workaround, Moroko said, the data center sector is being driven toward renewable energy sources and regional locations.

“For large-scale data centres, access to power, not land, is becoming the primary constraint,” Moroko said.

As a result, regional locations are emerging with additional advantages, including larger land parcels, improved cooling potential, and access to supporting infrastructure such as gas pipelines and water resources.

Image: Rok Solid

Off-grid and hybrid gas-fired generation, increasingly paired with large-scale solar, is emerging as a preferred solution for off-grid or semi-islanded data centre development.

Rok Solid is currently representing a 2,600-hectare site near Mildura with gas and water access, reflecting the scale required for next-generation, off-grid data centre developments.

For the energy sector, the rise of off-grid data centres may mark a significant evolution in how large electricity users engage with generation and storage solutions.

“For landholders with the right fundamentals, and for operators seeking certainty in an increasingly constrained market, the future of data centres may lie well beyond the grid,” said Moroko.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

Can sodium-ion beat Li-ion in portable power? Bluetti Pioneer Na gives it a try
13 February 2026 The world of batteries needs alternative chemistries to skirt weaknesses with lithium-ion. Sodium-ion is a big hope, and in portable power, Bluetti’s...