Australia has set a 2035 emissions-reduction target of 62–70% below 2005 levels, on the pathway to net zero by 2050. For operators of critical infrastructure like data centres, that creates clear direction—and opportunity—to align investment with national policy while improving resilience and efficiency.
$5B Net Zero Fund:Opportunity for Industrial Decarbonisation
The Australian Government has announced a $5 billion Net Zero Fund, delivered via the National Reconstruction Fund, to support heavy industry in decarbonising and scaling low-emissions technologies. The program is intended to help large industrial facilities make major investments in equipment, technologies and processes. Data centres may be well-placed to benefit where projects meet eligibility and impact criteria.
Investments that improve electrical efficiency and reduce losses—for example, high-efficiency drives and harmonics mitigation—align with the Fund’s decarbonisation aims and the broader Net Zero Plan.
Government Operations:Signals for Performance Expectations
The Net Zero in Government Operations Strategy sets the Commonwealth’s approach to achieving net zero government operations by 2030 (excluding Defence/security agencies). It identifies practical actions across electricity, buildings and energy efficiency, procurement, fleet, travel, and computing and data systems. While these requirements apply to Commonwealth operations, they provide a clear signal of rising expectations that can influence wider market practice and future standards.
For data centre operators supplying or partnering with government—or simply aiming to stay ahead—power quality and energy efficiency are increasingly central to compliance pathways and cost control.
Built Environment & Embodied Carbon:Why Power Systems Matter
Infrastructure Australia reports that buildings and infrastructure directly account for nearly one-third of Australia’s total emissions, and embodied carbon from building activity contributed about 10% of national emissions in 2023. Reducing operational energy and losses complements embodied-carbon strategies by lowering lifetime impact and operating costs.
For data centres—among the most energy-intensive facilities—efficient power systems (including harmonics control) strengthen both the sustainability case and operational reliability.
What This Means for Data Centres
- Efficiency + power quality: Cutting electrical losses and harmonics supports emissions goals and lowers operating expenditure over time.
- Policy alignment: Government commitments and funding signal strong momentum; commercial operators can position projects to align with these priorities.
- Future-readiness: Even where requirements currently apply to Commonwealth assets, they telegraph the trajectory for broader market expectations around performance.
Driving the Change
At ABB, we provide ultra-low harmonic drives and power quality solutions designed specifically for the demands of data centres. By reducing losses and improving efficiency, our technology helps operators stay compliant, cut emissions, and secure long-term reliability—while helping reduce operating costs and deliver long-term value over the asset’s life.
Because when it comes to Net Zero, power quality isn’t just an engineering choice—it’s a business-critical decision.
Find out how ABB drives can improve your data centre power quality.
