Australia to mandate renewable energy for data centres

Australian Energy Minister Chris Bowen has clarified that new national standards for data centre power supplies will not include special carve-outs for states wishing to use fossil fuels. While the federal government is legislating standards that mandate 100% renewable energy backed by firming, a concession allows state-owned entities to apply for exemptions if they can prove non-renewable options are cheaper than renewables. The Australian Energy Regulator will oversee these applications.

In the Northern Territory, the government is simultaneously pursuing two different energy paths. While officials seek to use gas from the Beetaloo basin to power future data centres, the state-owned utility Territory Generation is launching a tender for utility-scale solar capacity in Alice Springs. This initiative aims to bolster the local grid with projects between 5 and 15 megawatts, potentially including battery storage, to reduce reliance on costly gas peaker plants.