NextDC’s record AI demand meets Australia’s power constraints

On August 27, NextDC, an Australian data center operator, announced it has seen its best contracting performance so far, increasing the amount of contracted capacity by three times to 740.1 MW and posting a profit for the year again as the AI infrastructure boom puts increasing pressure on power and water supplies.

According to the data(ASX: NXT), contracted utilization surged by 202%, and capital expenditures reached A$3.4 billion, twice the expenditures recorded previously, as the company hurried to meet customer requirements.

As far as the overall AI market is concerned, the data represents how quickly computing needs are turning into electricity consumption. As per the estimates by Gartner, global data center consumption will increase from 447 terawatt-hours in 2025 to 565 terawatt-hours in 2026, which means a 26% growth. AI-optimized servers will make up 31% of that consumption.

According to McKinsey, the data center construction rates will grow even faster. The total amount of energy required by the world’s data centers is estimated to increase from about 82 gigawatts in 2025 to around 220 gigawatts by 2030. It is expected that the amount of energy needed, particularly by AI, will grow from 44 gigawatts to 155 gigawatts, which is approximately 70% of the entire demand.

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