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Jemena is engaged in a $260 million conflict with the AER over funding for necessary upgrades to the power grid due to anticipated demand from data centres in Melbourne's north-west. Jemena argues for $2 billion in revenue to manage a projected doubling of electricity demand by 2031, while the AER proposes a limit of $1.7 billion.

The regulator questions Jemena's growth forecasts, labeling them as overstated and potentially costly for consumers if data centres fail to materialize. The AER's decisions have previously affected other networks, and the final ruling on Jemena's proposal is expected in April 2026.