The Climate Council has welcomed moves by most Australian governments to require new large-scale data centres to support additional renewable energy generation but warned that stricter rules must be introduced quickly to keep pace with rapid infrastructure growth.
The comments follow a meeting of the Energy and Climate Change Ministerial Council (ECMC), where all jurisdictions except Queensland and the Northern Territory backed the Commonwealth's proposal to legislate national standards requiring new data centres to underwrite additional renewable electricity generation.
The ministers also agreed to develop changes to the National Electricity Rules to ensure data centres offset their electricity demand with new renewable generation, while endorsing a nationally consistent approach to regulating the sector.
Climate Council chief executive Amanda McKenzie said the agreement represented an important step but argued the proposed framework lacked a clear implementation timeline.
“It’s encouraging that most states and territories agree that we need additional renewable energy to power data centres, and that the Albanese government plans to legislate imminently,” McKenzie said.
“It is vital that data centres are powered with additional renewables to protect consumers from price and pollution spikes.”
She warned that new facilities are being built rapidly and said renewable energy requirements should apply from the moment they connect to the grid.
“But there was no agreement on the time frame. Data centres are coming online very quickly, so the National Electricity Rules must ensure that they are required to source additional renewable power from the get-go,” McKenzie said.
McKenzie also criticised Queensland and the Northern Territory for not supporting the proposal, arguing their opposition could leave consumers exposed to higher electricity prices and increased emissions.
“Unless these hold-out governments get on board, Queenslanders and Territorians will be left paying higher power bills, and we will all pay the price of higher climate pollution,” she said.
Detailed legislation and changes to the National Electricity Rules are expected to be developed over the coming months.
The final framework, including compliance timeframes and how operators will demonstrate they have secured additional renewable generation, will determine how new data centres affect electricity prices and Australia's emissions as demand for AI infrastructure continues to grow.
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David Hollingworth
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.