Queensland and Northern Territory Reject Federal AI Datacentre Renewable Power Plans
States oppose 'underdeveloped ideas' handing increased power to Canberra amid energy demand concerns
Quick Look
Queensland and the Northern Territory have rejected the federal government's plans to mandate renewable power use in AI datacentres, calling them 'underdeveloped ideas' that centralize power in Canberra, as S&P Global warns of potential five-fold increase in datacentre power use by 2035.
AI-generated summary
Why It Matters
Australia faces growing energy demands from booming AI datacentres, prompting federal proposals for renewable power mandates.
Queensland and the Northern Territory have rejected the federal government’s plans to mandate that AI datacentres use renewable power, rubbishing Anthony Albanese’s proposals to regulate the booming technology as “underdeveloped ideas that hand increased power to Canberra”.
The latest federal-state stoush on energy comes as S&P Global, the economic rating agency, warns that power use from datacentres could rise five-fold by 2035 to 10% of Australia’s total consumption, and that a mismatch between delivery timelines for datacentres and renewable projects could lead to energy bills skyrocketing.
But the federal Labor government says it will forge on with its plans to place energy and water usage rules on datacentres, and to develop “nationally consistent” regulations about AI – even if some states don’t agree.
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What to Watch
AI outlook — possibilities, not facts
Federal government will proceed with nationally consistent regulations despite state opposition.
Likely · Within weeks
Increased investment in Australian renewables sector.
Very likely · Medium term
Open Questions
- How will the federal government enforce regulations without state support?
- What are the exact costs of compliance for datacentre operators?
