INTHEBLACK October 2026 - Magazine - Page 20
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The
data centre
dilemma
They are the backbone of the digital
economy, but the rapid expansion of
data centres is creating concerns around
corporate strategy and the environment.
Words Cameron Cooper
THE MASSIVE DATA CENTRES SPRINGING
up across Australia and the Asia-Pacific region are
a polarising presence.
Some see them as critical infrastructure to power the
growth of the digital economy. Others think they are
eyesores that will guzzle energy and water, and harm
communities and the environment.
Craig Scroggie is in the former camp as CEO of
ASX100-listed digital infrastructure company NextDC,
20 INTHEBLACK October 2026
which has more than 20 data centres either operating
or in the planning phase across Australia. He says such
facilities are crucial economic and productivity drivers for
modern society.
“Connectivity is the lifeblood of the modern economy,”
Scroggie says. “Online banking, government services,
cloud computing and consumer platforms such as Netflix,
Spotify and TikTok all depend on it. Metropolitan fibre,
intercity fibre, undersea cables and satellites form the
digital nervous system that connects users, applications,
cloud platforms and data centres, which enable the
modern economy to operate every second of every day.”
Scroggie adds that the rollout of data centres from
NextDC and other providers come on the back of demand
from the world’s AI power players such as Amazon Web
Services and Microsoft. “We do not build speculative
capacity. Capacity matched to demand is the foundation
of our strategy. That discipline is why hyperscale and AI
customers commit to us for the long term.”
