Origin Energy reported that increased electricity demand from data centre customers contributed to a rise in its business electricity sales over the past financial year, highlighting the growing impact of artificial intelligence infrastructure on Australia’s energy market. The company said business electricity volumes grew by 1 percent in fiscal year 2026, driven primarily by new and expanded load from data centres. In contrast, residential electricity demand remained subdued amid widespread rooftop solar adoption, improved energy efficiency, and milder weather conditions.

The energy retailer’s update marks a notable shift from its public statements last year. In the 2025 annual report, Origin made no mention of data centres influencing its electricity demand or revenue. In fact, by the December quarter of that year, the company had seen a 5 percent decline in business electricity volumes due to customer losses. However, three months later, Origin identified the data centre sector as the key factor behind a 4 percent increase in business electricity sales in the preceding quarter, with strong growth tied directly to the expanding data centre market. Chief Executive Frank Calabria noted that the company had increased its market share in this sector.

Friday’s announcement confirmed that the trend toward greater electricity consumption from data centres continued throughout the full 2026 financial year. Origin attributed the overall growth in business electricity sales volumes to “new and increased demand from data centre customers,” underscoring the sector’s rising role in shaping energy consumption patterns.

This development aligns with projections from the Australian Energy Market Operator, which expects data centres to be among the fastest growing sources of electricity demand in coming decades. Governments at both federal and state levels have embraced the data centre industry for its potential to attract significant investment and create jobs. However, the rapid expansion of these electricity-intensive facilities poses challenges, particularly regarding the need for substantial investments in electricity generation, energy storage, and transmission infrastructure.

Consumer advocates and energy experts caution that without careful management, the costs associated with developing and maintaining this infrastructure could lead to higher electricity bills for customers. The evolving dynamics of power demand from data centres are therefore likely to fuel ongoing debates over who should bear the financial responsibility for supporting this new wave of high-capacity energy use.