By Terry Maiolo, VP & General Manager Asia Pacific, OVHcloud

As Earth Day approaches, it is an opportunity for organisations across the globe to reflect on their environmental impact. For the tech sector in particular, the exponential growth of GenAI and its data requirements inevitably means that the spotlight is shining squarely on data centres. A recent parliamentary report on the opportunities and impacts of AI technologies in Australia noted that a single ChatGPT query generating text could use between 10 – 90 times as much energy to process as a simple web search. With digital infrastructure underpinning nearly every aspect of modern life, data centres have become more than essential.

Sydney is now a booming data centre hub, currently home to more than 30 major facilities and represents Australia’s largest concentration of digital infrastructure. The challenge? Striking the right balance between delivering high performance and ensuring sustainable operations in these hubs.

The environmental footprint of Australia’s digital growth

But with that growth comes environmental strain. The same report indicated that data centres could currently account for around 5 percent of energy use in Australia. That is expected to rise sharply as AI, big data and cloud services become even more widespread, with some projections suggesting growth between 8 – 15 percent by 2030.

In Sydney, where new hyperscale campuses are being built across Western Sydney’s “data centre alley”, facilities often rely heavily on the grid for cooling and power. This is currently raising concerns around water consumption, emissions and land use.

Globally, the Information and Communication Technology sector contributes at least 1.7% of greenhouse gas emissions, and data centres account for a significant portion of that. Data centres need a significant amount of water for cooling, often at unsustainable levels for stressed regions of Australia.

Radical Transparency: A Foundation for Progress

Before diving into technology use, let’s discuss approaches taken by data centre operators regarding their overall emissions which is as important as the technology they are using to house data for others.

The path to a greener technology industry could lie in the concept of radical transparency. This is a sustainability strategy built not just on ambition, but on accountability, visibility, and collective responsibility. Too often, organisations set ambitious environmental targets without fully understanding their own emissions.

In Australia, Scope 1 and 2 emissions (direct and purchased electricity) are widely tracked under corporate Environmental Social Governance (ESG) requirements. But Scope 3 which includes emissions from the supply chain, manufacturing, and employee travel is still largely unaccounted for.

Without measuring these impacts, we would be solving only part of the problem. Radical transparency means owning those numbers and using them as a basis for smarter action. At OVHcloud, we commit to reduce scope 1 and 2 greenhouse gas emissions by 73.4%[i] by 2025 and scope 3 emissions by 52%[ii] by 2030.

Balancing High Performance with Low Impact

Sustainability in Australian data centres doesn’t mean compromising on performance. In fact, the two can and should reinforce each other. Here’s how:

Smarter Cooling Solutions
Sydney’s climate, particularly in summer, increases cooling loads on data centres. Transitioning from energy-intensive air cooling to water-cooling, immersion cooling or hybrid systems can dramatically improve energy efficiency and reduce water waste.
Reuse Over Rebuild
Construction contributes up to 10% of Australia’s total carbon emissions. Where possible, repurposing existing industrial sites for new data centres, rather than greenfield builds, can reduce embodied carbon significantly. Likewise, reusing server components, racks and networking gear avoids waste and extends the lifecycle of critical infrastructure.
Set Public, Third-Party Verified Targets
Adopting local standards such as the NABERS rating for data centres (Australia’s trusted sustainability benchmarking tool) ensures transparency and comparability across operators.
Partner With Circular Economy Startups
Australia’s circular economy ecosystem is growing with Sydney-based innovators tackling e-waste, plastic foam reuse and component recycling. Collaborating with these startups helps solve systemic challenges and supports local green jobs.
Celebrate and Share Wins
In an industry where progress is often behind the scenes, celebrating sustainability milestones builds momentum and trust. Earth Day is a perfect moment to reflect and reaffirm those commitments.

As Australia’s largest data centre market, Sydney has a unique opportunity to lead. With government investment in digital infrastructure and growing ESG scrutiny from corporate tenants, Sydney’s operators can set a national (and international) benchmark in sustainable design and operations.

Transparency isn’t just about compliance; it’s a catalyst for innovation. By embracing clear metrics and designing with reuse in mind, we can reduce environmental impact without compromising performance or scalability.

This Earth Day, we encourage every business in the tech ecosystem to take a hard look at their emissions, ask the tough questions and lean into a culture of openness. Building a sustainable digital future isn’t just an ambition. It’s a shared responsibility.

INDEPENDENT NEWS IS IMPORTANT.

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