Making Australian data centres more sustainable

In anticipation of the AI boom, a major Australian project will take on the challenge of optimising energy use and emissions in the nation’s data centres, using next‑generation quantum and artificial intelligence technologies.

Led by La Trobe University and funded with a $1.1 million grant under the federal government’s Critical Technologies Challenge Program (CTCP) the project brings together leading industry and university partners to develop and deploy a fully functioning prototype within one of Australia’s major data centre facilities.

Professor Damminda Alahakoon, project leader and Director of La Trobe’s Centre for Data Analytics and Cognition, said data centres were a critical backbone of Australia’s digital economy, and their rapid expansion — driven by cloud computing and artificial intelligence — had already delivered sustainability gains, moving operations out of inefficient office buildings into specialised facilities.

The widespread adoption of AI is expected to propel data centres into their next phase as AI factories, supporting digital systems including those in health care, research and national security.

With Australia having become a leading destination for data centre investment in the Indo-Pacific, the Australian Government released its National AI Plan promising smart infrastructure in December in 2025, and the Victorian Government released its own AI Mission Statement and Sustainable Data Centre Action Plan this year.

The project is a collaboration between La Trobe University and The University of Western Australia’s Centre for Quantum Information, Simulation and Algorithms (QUISA), led by Professor Jingbo Wang, with industry partners including Australian data centre operator NEXTDC, Fujitsu and AQ Intelligence.

Under the CTCP grant, La Trobe researchers will lead the development of a hybrid optimisation framework that combines quantum‑inspired algorithms, quantum machine learning and advanced classical optimisation to manage heating, ventilation and cooling systems more efficiently.

Building on a successful CTCP-funded feasibility study, the project will then develop a next-generation energy management prototype, built upon novel quantum optimisation algorithms, complementary machine learning, and quantum-inspired and classical optimisation techniques.

The system will first be tested in a high‑fidelity digital twin before being deployed within a physically isolated operational testbed provided by NEXTDC.

Peter Grassi, Chief Executive Officer of Fujitsu in Oceania, said the future of AI depends on its ability to run sustainably. “With cooling systems accounting for up to 30% of a data centre’s energy use, Fujitsu is actively working to address this challenge,” he said.

“Fujitsu’s quantum simulators and our Digital Annealer, a quantum-inspired technology, are designed to solve complex, real-world problems like improving the efficiency of data centre cooling systems. It will help researchers to find smarter, more efficient ways to manage critical infrastructure.

“These capabilities support our global quantum ambitions, including building a 10,000+ qubit quantum computer, turning our deep expertise into practical solutions that bolster Australia’s sovereign advantage.”

Beyond data centres, the optimisation framework developed at La Trobe University and The University of Western Australia has potential applications across industries such as manufacturing, logistics, smart buildings and renewable energy systems.

“This project strengthens Australia’s sovereign quantum capability, builds the skills and expertise needed for the next generation of researchers and innovators, and will guide the operation of sustainable AI data centres,” said La Trobe Vice-Chancellor Professor Theo Farrell.

Image credit: iStock.com/Дмитрий Ларичев