Australia Mandates Renewable Power for New Data Centers

Australia's energy minister, Chris Bowen, has declared that the Northern Territory's ambition to power data centers with shale gas resources would conflict with proposed national standards. This stance casts doubt on the Territory's plans to attract significant tech investments.

Canberra's new policy requires data centers to establish their own new renewable power sources instead of relying on electricity from the existing grid. Both Queensland and the Northern Territory had previously supported the use of gas-fired power for data centers. "If a data center (is) proposed to only use gas, it will not meet the minimum national standards, and it won't be allowed to register," Bowen stated in response to a question from Reuters.

“

If a data center (is) proposed to only use gas, it will not meet the minimum national standards, and it won't be allowed to register.

The new rules from Canberra envision data centers receiving renewable energy certificates. Bowen made these remarks following an address where he announced a new rooftop solar scheme. The Northern Territory recently allocated 185 hectares of land near Darwin to Beetaloo Digital for the development of a 2-gigawatt data center. The parent company, Beetaloo Energy, plans to supply this facility with power derived from shale gas resources it is developing in the Beetaloo sub-Basin.

Beetaloo has indicated that its data center project could attract up to A$40 billion in private investment. However, reports from the Climate Change Authority suggest Australia may struggle to meet its 2035 target for carbon emission reductions without accounting for large new projects. Bowen acknowledged that gas could play a role in "firming" or backing up intermittent renewable energy supplies, but emphasized that gas power should primarily remain dormant. "I think that's pretty sensible," he commented.

“

I think that's pretty sensible.