As Australia’s data centre sector enters a new growth phase, energy has become a critical strategic lever. In this conversation, Liam McWhirter, General Manager, Enterprise and Strategic Partners at Origin, joins Corinium’s Parveen Sekhon to unpack how energy partners and operators can work together on renewables, storage, grid participation, and early-stage planning to secure and future-proof power at scale amid surging AI demand.
Australia’s data centre sector is expanding rapidly, with power demand expected to rise significantly this decade. From Origin’s perspective, what does this surge in demand mean for businesses operating across the energy and digital infrastructure ecosystem?
Australia’s data centre surge represents a double transition. We are seeing the emerging growth of AI energy demand occurring at the same time as renewables in the system are increasing and older coal plants are coming to the end of operation.
The AEMC’s recent proposal for new grid standards acknowledges that data centres are no longer just passive loads, they are now active grid participants. This means that renewable energy generation, storage and energy management are integral to the energy security of their operations and for the grid at large. For Origin, this means we have had to move beyond traditional energy supply to becoming a deeply integrated partner.
We have established a specialised team of cross-functional experts, ranging from grid connection engineers to embedded network specialists, to help our partners navigate these significant investments from the inception of the project through to the first day of operations.
Energy availability is quickly becoming a critical factor in data centre site selection. How are you seeing energy strategy influence where and how new facilities are being developed in Australia?
Access to energy has become the primary driver of site selection. We are seeing a major shift toward the repurposing of high-strength industrial sites. These brownfield locations often have the large connections and existing industrial water rights meaning they have good speed to power, and hyperscalers can achieve faster access than greenfield sites.
Many operators are exploring behind-the-meter generation, storage, and hybrid energy models. What solutions are proving most effective in helping data centres secure reliable and scalable power today?
The most effective solutions today pair behind-the-meter generation with energy storage. Another consideration is how data centres manage the energy load of their various energy assets, which is something Origin does for our customers through our Virtual Power Plant.
We make sure that a customer’s on-site backup and storage charges from the grid when prices are low due to large amounts of renewable energy in then grid, and then we coordinate the storage to be available to support the grid during peak demand events. All while not interrupting operational stability.
With the high penetration of intermittent renewable energy into the grid, this combination of behind-the-meter flexibility allows our customers to achieve maximum uptime while also supporting grid stability. We are also seeing significant interest in embedded networks to manage these complex, energy-intensive sites more efficiently.
Renewable procurement is a major priority for hyperscalers and enterprise operators. What role are power purchase agreements (PPAs) and renewable matching playing in enabling sustainable data centre growth?
Renewable procurement is a core priority for hyperscalers and large enterprise data centre operators, particularly those with strong sustainability commitments. Globally, Power Purchase Agreements are the primary vehicle they use to achieve this, as PPAs provide clear physical additionality by directly underpinning new renewable generation. Long term offtake commitments from large energy users can materially support projects reaching financial close while also giving customers long term price certainty and supporting the broader energy transition.
At the same time, expectations are evolving beyond simple annual matching. For data centres with a 24/7 load profile, matching total consumption with renewable certificates alone is no longer sufficient. The focus is increasingly on aligning energy demand with renewable generation over shorter timeframes. In response, we work with customers to design tailored energy contracting strategies that combine long term renewable PPAs with bespoke wholesale, financial and hedging solutions. This approach helps manage cost and risk, secure large scale supply, and support grid stability — including through mechanisms such as demand response.
Grid infrastructure and connection timelines remain a challenge for large projects. Where do you see the biggest opportunities for collaboration between energy retailers, utilities, and data centre developers to accelerate access to reliable power?
The biggest opportunity lies in moving toward a coordinated approach much earlier in the development lifecycle. Instead of each developer negotiating in a silo, we are seeing a move toward multi-user infrastructure. For example, for developers and generators to co-design shared substations and network upgrades, which spreads costs and reduces engineering complexity for everyone. Retailers can then facilitate the recovery of these costs through transparent billing arrangements.
By leveraging our grid connection expertise with large energy assets, we are also supporting our customers from the design phase, ensuring these facilities are grid-ready and compliant and reduce wait times and bottlenecks.
Liam McWhirter is a speaker at Data Centre Exchange Australia 2026 on 26 May in Sydney. The event will bring together senior ecosystem leaders to support the next AI-driven wave of development and strengthen Australia’s position as a global data centre hub.
.png?width=352&name=CDAO%20Sydney%20(3).png)
