Could a data centre boom increase price volatility in the NEM?
Could data centre growth reverse the downward trend in power prices and spreads in Australia’s NEM? With the rapid buildout of batteries on the grid and in homes suppressing price volatility, demand growth from data centres is one of a few potential upside drivers prior to coal retirements starting in 2028. But any uplift relies on the pace of demand growth, which depends not only on buildout but also how data centres are utilised.
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