A regulatory watchdog warns that progress on cleaner electricity generation is being offset by growing demand from data centres. According to the review cited by multiple outlets, emissions in the electricity sector fall by around 8% in 2025 compared with 2024. However, the watchdog says the expanding need for computing and storage capacity can increase overall electricity consumption, which can undermine the emissions reductions achieved through cleaner generation. The review frames the issue as a balance between decarbonisation gains on the grid and higher load from data-centre development. While the electricity sector shows improvement year-on-year, the watchdog indicates that total emissions outcomes depend not only on the carbon intensity of electricity, but also on how quickly new high-energy users are added to the system. The outlets present the warning as a prompt for ongoing monitoring of the relationship between infrastructure growth and emissions trends, rather than a sign that reductions are reversing entirely.
Watchdog warns rising data centre demand offsets electricity sector emissions gains
A regulatory watchdog warns that progress on cleaner electricity generation is being offset by growing demand from data centres. According to the review cited by multiple outlets, emissions in the ele...
- Electricity-sector emissions are reported to fall by about 8% in 2025 compared with 2024.
- A watchdog says growing data-centre demand offsets some of the emissions gains from cleaner power.
- The review links emissions outcomes to both the carbon intensity of electricity and total electricity consumption.
- The warning is based on a year-on-year comparison of 2024 and 2025 emissions figures.
- The issue is framed as ongoing monitoring of how new high-energy infrastructure affects emissions trends
The review outlines that emissions in the electricity sector fell by around 8 per cent in 2025 compared with 2024.
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