Australia’s growing demand for data centre capacity is increasing pressure on energy and water resources, with NextDC reporting higher consumption alongside stronger financial performance for the year ended June.
The data centre developer’s water usage effectiveness (WUE) ratio increased to 2.40 litres per kilowatt-hour, compared with 2.25 a year earlier. Its power usage effectiveness (PUE) ratio also rose to 1.49 from 1.44. Both measures have deteriorated for 3 consecutive years.
NextDC attributed part of the increase to newly commissioned capacity running cooling systems before full IT deployment. It also identified water leaks, utility meter anomalies and differences between site and utility records during data reconciliation.
“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 its sustainability report.
The company added that 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”.
WUE and PUE are closely monitored as indicators of the pressure data centres place on water and electricity resources. The issue has gained attention as governments and regulators increasingly consider restrictions on new data centre developments because of concerns around electricity costs, water availability, land use and impacts on local communities.
In Australia, Canberra is considering nationally consistent requirements for data centres covering energy, water and location decisions. It has also proposed that new data centres build additional renewable power generation instead of relying on electricity from the existing grid.
Alongside the resource-use figures, NextDC reported stronger financial results. Revenue increased 16%, while the company moved to a profit of A$82.1 million ($59.14 million) for the year, compared with a A$60.5 million loss in the previous year.
The profit was partly supported by an accounting change that recognised a gain in the value of its properties. Underlying EBITDA increased 15% to A$248.8 million, exceeding average analyst expectations according to Visible Alpha.
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