The federal government has pushed back firmly against claims that Queensland and the Northern Territory will be able to decide how data centres are powered, insisting there will be “no exceptions and no carve‑outs” under Australia’s national renewables standards.
Energy and Climate Change Minister Chris Bowen said new national rules will still require data centres to supply their own “100 per cent” renewable energy, supported by battery storage or gas for firming. His comments follow Queensland Premier David Crisafulli declaring a “win” after Wednesday’s national cabinet meeting, suggesting states would have more control over energy sources.
Bowen rejected that interpretation, saying the Commonwealth will set the standards and assess any state applications to use coal or gas as a primary power source. States would need to prove such an arrangement is “cheaper and better for the grid than renewables” a threshold Bowen described as extremely difficult to meet.
The debate has been widely viewed as a clash between Canberra and states that have resisted federal direction on energy policy. Both Queensland and the NT had insisted they would not be dictated to by the Commonwealth.
The debate has been widely viewed as a clash between Canberra and states that have resisted federal direction on energy policy. Both Queensland and the NT had insisted they would not be dictated to by the Commonwealth.
Bowen said the Australian Energy Regulator (AER), acting for the federal government, will evaluate any proposals from states and “make a decision”.
“But we will be legislating those standards, which will apply equally in Queensland and the Northern Territory as everywhere else,” he said.
Bowen added it would be “very, very difficult indeed” for any state energy company to convince the Commonwealth that a coal‑powered arrangement could outperform renewables on cost.
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