Lessons

TOPIC 42 · IN-DEPTH TOPIC

Data centres, industrial loads, EV hubs and microgrids

Assess load profile, redundancy, power quality, flexibility and connection risk.

Rule changes & review notes

Course review notes

Related changes & practice

Use these dated sources to test how the lesson applies. Check the status before treating a proposal as a current requirement.

Large-load connections: technical standards first

Draft · NEM; proposed access standards

Package 2 proposes a revised technical framework for inverter-based loads. A proposed classification threshold is not an exemption from network studies, power-quality obligations or connection assessment. Distinguish a draft design from the applicable rules and project-specific requirements.

Apply it: A 25 MW facility says a proposed 30 MW large-IBL threshold means it needs no connection studies. Is that a sound approval basis?

Check your reasoning

No. A classification threshold does not establish an exemption. Identify the current instrument, plant classification, connection point, network requirements and applicable technical studies; track the final rule and transition arrangements separately.

Read briefing · Official source · Source checked

Who pays for the network upgrade?

Consultation · NEM; proposed cost recovery

The consultation examines how data centres and other large loads contribute to network augmentation costs they cause or accelerate. Technical access and cost allocation are separate workstreams: an acceptable design does not settle who funds the upgrade.

Apply it: An assumed A$40m upgrade has no agreed allocation. The model assigns only 25% to the project. What sensitivity belongs in the investment brief?

Check your reasoning

Show A$10m at the assumed 25% and A$40m at full allocation: A$30m additional exposure. These are invented teaching inputs, not a proposed tariff. Request the applicable framework, network estimate and allocation agreement before committing the base case.

Read briefing · Official source · Source checked

Data centres: separate annual energy from connection capacity

Planning forecast · AEMO

The 2026 ESOO Step Change scenario projects NEM data-centre consumption rising from 5 TWh in 2025–26 to 34 TWh in 2035–36. These are annual energy forecasts—not committed projects or guaranteed peak load.

Apply it: Convert 34 TWh/year to average MW using an explicit 8,760-hour teaching year. Explain why this cannot establish an individual site's peak connection requirement.

Official source · Source checked

Browse all course briefings

Understand · 1 of 4Self-paced

Translate IT load into grid requirements

Data-centre IT demand is not total facility demand. Cooling and other overheads raise energy use. Redundancy, UPS duration, restart ramps, power quality and firm connection capacity require separate analysis. PUE is an energy ratio over a defined boundary and period; using it for peak power requires an explicit approximation.

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The lesson

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01Define what the announced MW actually measures

Data-centre announcements can refer to IT capacity, facility demand, contracted grid capacity or an eventual campus build-out. Those are different quantities. Begin with a boundary diagram covering utility supply, transformers, UPS, IT equipment, cooling and other auxiliary loads. Record whether each number is a nameplate rating, actual average, coincident peak or future forecast.

Power usage effectiveness, PUE, is total facility energy divided by IT equipment energy over a consistent period and boundary. With 500 GWh facility use and 400 GWh IT use, PUE is 1.25 and non-IT use is 100 GWh. PUE does not by itself measure useful computing work, water use, carbon emissions or service reliability.

Watch the explanation

Key terms in plain English
MW
Megawatt: a measure of power, or how quickly energy is transferred. A plant's maximum MW is not its actual output in every interval.
MWh
Megawatt-hour: a quantity of energy. A steady 1 MW for one hour delivers 1 MWh.
PUE
Power usage effectiveness: total data-centre energy divided by IT-equipment energy over the same period and boundary. It is not a measure of carbon intensity.
Supporting diagrams

Facility energy is not IT energy

A constant-load example at one consistent boundary.

  1. 01 · IT equipment80 MW

    Computing demand

  2. 02 · Cooling + other overhead20 MW

    Defined facility overhead

  3. 03 · Facility total100 MW

    80 + 20; power-equivalent PUE 1.25

One-hour IT energy
80 MWh
One-hour facility energy
100 MWh
PUE in this constant case
100 ÷ 80 = 1.25
The boxes show addition, not a series electrical circuit. Real PUE is an energy ratio over a defined period; use coincident time-resolved loads for a connection study.

Three different capacity questions

A project pipeline is not a meter reading.

  1. 01 · ProposedWhat might be built?

    Project intentions and uncertain timing

  2. 02 · Connection milestonesWhat has progressed?

    Agreements, studies and energisation

  3. 03 · Operating demandWhat is actually used?

    Commissioning ramp, utilisation and metering

Conceptual project sequence, not a claim that every proposal completes. Do not sum overlapping stages or convert a queue's maximum MW into guaranteed annual MWh.