As Australia braces to tackle the challenge of a burgeoning demand for data centres to power the AI revolution, the question of how to power these new-age furnaces of industry remains open.
Australia’s National Cabinet is meeting today to hammer out the rules that will oversee Australia’s data centre revolution and possibly find an answer to that conundrum.
For many, renewables seem the answer, although the challenge of the always-on demands of data centres is seen as a barrier, especially among those who believe renewables cannot provide constant power during poor weather.
So, clearly, the answer is… Nuclear reactors, according to Nuclear for Australia’s founder Will Shackel.
"Australia's energy demands are only growing, and if we want to be an AI and data centre powerhouse, first we need the power. Australians’ energy bills can’t be the sacrificial lamb here,” Shackel said in an August 26 statement.
"That means Australia needs more reliable power. For all our sakes, that power should not be fossil fuels like gas and diesel.
“Anthropic is reportedly interested in delivering up to five gigawatts in NSW alone – with numbers like that, nuclear is the low emissions option we need to increase power supply, and advanced reactors are the key.”
According to the group, development of “advanced nuclear reactors” operating at a smaller scale is proceeding quickly, moving beyond theory into actually deployable reactors. Since June 2026, six companies – including one based in Australia – have achieved criticality with their nuclear programmes.
In addition, Microsoft, Google, Amazon, Meta and Nvidia have all expressed interest in using nuclear power as part of their data centre operations.
“Minister Bowen said that cost and time, not safety, are the issue with nuclear. If that’s the case, then there’s no harm in lifting the outdated bans on nuclear, because if the economics don’t stack up, these companies won’t invest in it,” Shackel said.
“If Government plans to make investors supply their own power, those investors should be allowed to explore all the options, including advanced nuclear.”
Nuclear energy was a key plank of the Coalition’s 2025 election platform, with the then opposition leader Peter Dutton claiming “We can have cheaper, cleaner and consistent energy if we adopt nuclear power”.
“And zero-emission nuclear power is our only chance to reach net zero by 2050.”
The plan did not resonate with voters, however. In the wake of the Coalition’s resounding loss, Climate Council CEO Amanda McKenzie said the electorate had made its stance on nuclear energy clear.
“This was an energy referendum. Nuclear bombed at the ballot, with Australians dubbing it toxic. Australians backed a bright, clean, renewable energy future and endorsed the progress that has already been made,” McKenzie said at the time.
“Polls consistently showed nuclear was unpopular and voters preferred a renewable energy plan to a nuclear one.”
However, with the Australian Energy Market Operator confirming this week that Australia’s data centre development pipeline has ballooned over the last year, McKenzie said today “it’s clear that how we manage this industry will shape extreme weather events and energy bills for decades to come”.
“Every new data centre in Australia – including those already proposed – must be subject to strong standards that bring on genuinely new renewables, fast. That’s what Australians can reasonably expect, so we avoid data centres pushing up pollution or power prices,” McKenzie said in her own August 26 statement.
“In committing to ensure every new data centre in Australia is powered by renewables, the Australian Government is heeding community concerns. Any state and territory blocking this move is putting the interests of industry ahead of their own people.
“We owe it to our kids and future generations to get data centre development regulation right.”
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