Australia mandates renewable power for new data centres

Energy Minister Chris Bowen announced that new large‑scale data centres in Australia must source the majority of their electricity from renewable generation and obtain renewable energy certificates. Facilities that rely solely on gas, such as the Northern Territory’s proposed shale‑gas‑powered 2‑gigawatt centre by Beetaloo Energy, would not meet the national standards and could not be registered. Bowen said gas may be used only to “firm” intermittent renewable supply, but should remain largely dormant.

The policy aims to prevent higher household electricity bills as the sector’s consumption, currently about 2 % of national use, is projected to rise to 6 % by 2030 and 10 % by 2050. Industry body Energy Networks Australia welcomed the framework, stressing that data centres must bring additional renewable energy, cover network costs and operate flexibly to support the grid. The government also plans legislation, expected in Parliament by early 2027, to require new data centres to underwrite renewable generation equal to or exceeding their electricity use and to fund 100 % of their grid connection costs. The rules are intended to align the fast‑growing AI and digital economy with Australia’s 2035 emissions‑reduction targets.