Surging AI and data‑centre investment is diverting capital away from Australian renewables and battery projects, posing downside risk to emissions‑reduction efforts, industry participants and a September report from the Institute for Energy Economics and Financial Analysis (IEEFA) said. Grok Ventures CIO Rida Ahmed described it as “a capital competition,” saying data centres are consuming most of the investment oxygen. IEEFA found only 6% of approved wind and solar projects on Australia’s major

Surging AI and data‑centre investment is diverting capital away from Australian renewables and battery projects, posing downside risk to emissions‑reduction efforts, industry participants and a September report from the Institute for Energy Economics and Financial Analysis (IEEFA) said. Grok Ventures CIO Rida Ahmed described it as “a capital competition,” saying data centres are consuming most of the investment oxygen. IEEFA found only 6% of approved wind and solar projects on Australia’s major grids have long‑term power purchase agreements (PPAs) — a key financing condition — and said uncertainty over coal‑plant retirement timing is suppressing deal activity with renewable developers. Clean Energy Finance CEO Paul McCartney said AI projects may offer higher returns and warned rising capex has pushed many renewable projects to the point where projected revenues cannot fully repay investment.