Jeff Monday, SVP & chief growth officer for system integrator Fluence, believes Australia can transform its data centre boom from a grid constraint into a growth opportunity by using battery storage systems to smooth power demand, accelerate connection times, maintain power quality, and create flexible power architectures that enable faster deployment while supporting the renewable energy transition.
One of the most exciting shifts we’re seeing in Australia right now is how quickly our customers are turning grid constraints, such as connection challenges and system‑security limits, into growth opportunities. Particularly with the expansion of data centres and the accelerating digitalisation of the economy.
Data centres sit at the heart of the digital economy. They power cloud services, artificial intelligence, and the tools that underpin productivity across every sector. But as electricity demand from the digital economy accelerates, one reality is becoming unavoidable: access to reliable, secure electricity supply is becoming the single most significant barrier to scaling the digital economy and the data centres that underpin it.
In Australia, this challenge is particularly acute. Data centres already consume around 2% of electricity in the National Electricity Market (NEM), and multiple independent forecasts show that share rising sharply through the 2030s as AI and cloud adoption accelerate.¹ The Australian Energy Market Operator (AEMO) projects data centre electricity consumption could reach around 6% of NEM demand by 2030, with further growth beyond that under higher‑uptake scenarios.²
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
Projects that are designed for flexibility from the outset are emerging as clear winners in the next phase of data centre development. Fluence’s recent joint research with DNV, informed by discussions with utilities, regulators, and data centre developers, highlights four primary insights to provide a data-backed roadmap for the industry.
Interconnection is the new bottleneck for digital growth
Across Australia, interconnection is no longer just about how much power a data centre needs, but how that load behaves and the impact on essential system services. Network service providers must assess ramp rates, variability, and response to disturbances, especially as AI workloads introduce sharper and less predictable demand profiles.
Battery energy storage systems (BESS) change that equation. By smoothing load variability, enforcing ramp‑rate limits, and applying point‑of‑interconnection controls, BESS allows data centres to present a predictable, grid‑compliant electrical profile that networks can plan around with confidence.
This flexibility unlocks connection pathways that might otherwise be delayed or denied. For the grid, it reduces risk at a time when connection queues and planning uncertainty are growing across major urban load centres³.
In the AI economy, time‑to‑power defines market leadership
Speed in energising with reputable delivery partners can be one of the most strategic decisions in defining whether a player is a market leader.
That’s why our customers are increasingly prioritising battery storage systems designed for faster delivery and simpler installation, including modular, high‑density platforms, built to accelerate deployment while making better use of constrained sites. Energy storage systems can be installed and commissioned far quicker than new transmission infrastructure, while still delivering the reliability that data centre operators require.
In Australia, where data centre growth is heavily concentrated around New South Wales and Victoria, this matters. Oxford Economics estimates electricity consumption from data centres could more than triple by the end of this decade, intensifying pressure on urban networks already under strain.⁴
Power quality is now a data centre performance risk
Reliability is no longer just about uptime. It’s also about delivering safe and secure power quality to protect data centre performance.
Australia’s power system is becoming more inverter‑dominated as renewables scale and thermal generation retires. AEMO’s Transition Plan for System Security highlights the growing importance of system strength, voltage control, and fault response in this new operating environment.5
As traditional generators transition their generation technology, many of the essential system services that once came as a by‑product of energy production must be deliberately planned for and delivered through new technologies and operating approaches, bringing system security and power quality into sharper focus as large, inverter‑based loads such as data centres continue to grow.6
Therefore, maintaining stable power quality is becoming just as important as avoiding outages. Issues such as voltage fluctuations or harmonics can affect sensitive AI infrastructure if left unmanaged, but they are increasingly being addressed through coordinated solutions across the grid.
Utility-scale BESS dynamically modulates active and reactive power, which can stabilise voltage during grid events and dampen oscillations caused by fast‑ramping AI loads. This isn’t just about supporting the grid. It’s about protecting customer assets and safeguarding long‑term performance in a more volatile power system.
Refactoring power architectures for speed, flexibility, and optionality
The opportunity in front of data centre developers is not simply about replacing diesel generators. In practice, diesel gensets remain a cost-effective way to provide long duration backup, and they are unlikely to disappear from designs any time soon.
What is changing is how power architectures are being refactored to accelerate speed to service and reduce dependence on immediate grid availability.
Rather than waiting years for full grid upgrades, developers are increasingly looking at ways to bring sites online earlier by using battery storage to manage load variability, support commissioning, and provide operational flexibility from day one. In some cases, this creates optional pathways to rethink where batteries sit in the architecture, not as a one for one replacement for generation assets, but as a complementary asset that enables earlier energisation and more resilient operations.
As server power supplies continue to evolve, some of the load smoothing requirements that batteries address today may diminish over time. More forward leaning developers are planning for that future now, intentionally building in flexibility so battery assets can shift roles as needs change, moving from load management and speed to service toward grid interaction and market participation where appropriate.
This is not about eliminating traditional backup systems. It is about designing power architectures that create optionality, allowing data centre operators to move faster, adapt as technology evolves, and extract more long-term value from the same infrastructure investments.
Turning digital growth into grid growth
Australia has a real opportunity in front of it.
With the right frameworks, data centres can become catalysts for new renewable generation and storage, accelerating the energy transition rather than straining it. Managed well, the data centre boom can strengthen the grid, not destabilise it.
This next phase of growth will be defined by collaboration. Developers, networks, policymakers, and technology providers all have a role to play in rethinking how large loads connect, operate, and create value over time.
The shift is already visible in the Australian market, with AEMC reforms now underway to modernise NEM access standards so they better reflect the operational realities of large, power‑electronics‑driven loads such as data centres, while maintaining system security.8
As regulatory frameworks evolve alongside technology and network planning, the industry is already moving from “can we do this?” to “how fast can we scale this responsibly?” Those who design for flexibility today will help set the blueprint for Australia’s digital and energy infrastructure for decades to come.
The Energy Storage Summit Australia 2026 will be returning to Sydney on 18-19 March. Jeff Monday will be attending the event and is available to meet with industry leaders who are interested in discussing how data centre growth, grid flexibility, and storage can be turned into long‑term competitive advantage.
Footnotes
- Climate Council, What does the data centre boom mean for Australia’s switch to renewables? (2025) https://www.climatecouncil.org.au/what-does-the-data-centre-boom-mean-for-australias-switch-to-renewables/
- Australian Energy Market Operator (AEMO), Inputs, Assumptions and Scenarios / Oxford Economics Australia Data Centre Energy Consumption Report (2025) https://aemo.com.au/-/media/files/stakeholder_consultation/consultations/nem-consultations/2024/2025-iasr-scenarios/final-docs/oxford-economics-australia-data-centre-energy-consumption-report.pdf
- Oxford Economics Australia, Estimating Data Centre “Phantom Demand”, commissioned by AEMO (2025) https://www.oxfordeconomics.com/resource/estimating-data-centre-phantom-demand/
- Oxford Economics Australia, Data Centre Energy Demand – Final Report (2025) https://theenergy.co/article/aemo-doubles-data-centre-demand-forecast
- Australian Energy Market Operator (AEMO), 2025 Transition Plan for System Security (TPSS), https://www.aemo.com.au/energy-systems/major-publications/transition-plan-for-system-security-tpss/2025-transition-plan-for-system-security
- Australia’s energy transition puts essential system services in focus, Energy‑Storage.News https://www.energy-storage.news/australias-energy-transition-puts-essential-system-services-in-focus/
- Moody’s Ratings, reported by The Energy, Data centres need $15bn energy investment (February 2026) https://theenergy.co/article/data-centres-need-15bn-energy-investment-moodys
- Australian Energy Market Commission (AEMC), Improving the NEM access standards – Package 2. https://www.aemc.gov.au/rule-changes/improving-nem-access-standards-package-2
About the Author
As chief growth officer, Jeff Monday is responsible for accelerating Fluence’s global growth strategy and drive the company’s expansion into emerging markets.
Prior to joining Fluence, Jeff served as Vice President, Global Enterprise and Channel Sales at Qualcomm. There, he launched Qualcomm’s first enterprise sales team, driving 46% CAGR across 21 countries.
Prior to Qualcomm, Jeff held a series of leadership roles at Apple, including Small Business Sales Leader for the US, Worldwide Business Transformation Leader, and Enterprise Sales Leader for the Western U.S. During his tenure, he scaled Apple’s U.S. Small Business division from US$500 million to US$3.5 billion in three years and helped launch new incubated business lines in partnership with Apple’s executive leadership. Including leading the team that displaced BlackBerry from the corporate enterprise.