Australia’s Climate Change and Energy Minister Chris Bowen insists data centres will be powered by renewables under new national standards, and that there will be no “carve-outs” for jurisdictions such as Queensland and the Northern Territory.
Bowen told RenewEconomy the Federal Government would “legislate binding national standards for data centres across the country without exception, which will require 100% renewables backed by firming”.
However, the minister clarified that the rules will allow state-owned fossil fuel assets to make a case-by-case argument to power data centres with fossil fuels such as gas and coal.
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Minister Bowen’s announcement was welcomed by the Climate Council, which is heavily advocating for 100% additional renewables to power the data centre industry.
“Australians are looking to governments to get this right. There’s a lot on the line—our energy security, the price of power and how much harmful climate pollution we lock in,” Climate Council CEO Amanda McKenzie said.
“People expect a fair dinkum deal, not a dud one that puts the interests of industry and big tech first. Renewable energy is already the cheapest and fastest option to build, so this is a question of whether data centres bring genuinely new clean energy with them, or soak up capacity the rest of us need. Clear and consistent national standards that deliver additional renewable energy, without any exceptions, is the only way to avoid higher power prices and pollution.
“Anything less than matching all new demand with new renewables will delay the retirement of ageing and unreliable coal power stations, increase reliance on polluting and expensive gas, and push up power prices and pollution.”
At a National Cabinet meeting this week, Queensland Premier David Crisafulli pushed back against the Commonwealth’s plan for renewables-backed data centres, saying the fact his stated owned much of its energy infrastructure meant it should be able to adopt a “technology-agnostic approach”.
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Northern Territory Chief Minister Lia Finocchiaro agreed, saying, “When it comes to issues like data security, data sovereignty, water usage, and location of data centres we need a nationally consistent approach because all Australians know this is important.
“… The Beetaloo Basin will be online within days, we are not part of the National Electricity Market, and we have a Territory-owned generation, transmission, and distribution system. Our focus remains on affordability and reliability of electricity for Territorians above all else.”
