Australia's national cabinet has decided to drop strict mandates that would have required new AI data centres to be powered entirely by renewable energy. Following a national cabinet meeting, Prime Minister Anthony Albanese indicated that exemptions would be made for certain jurisdictions, including Queensland and the Northern Territory.
South Australian Premier Peter Malinauskas defended the decision, stating on ABC’s 7.30 that there was a "genuine desire" to manage the national rollout collaboratively. He noted that while renewables are expected to power these data centres, gas will play a role in firming renewables, a long-held view in South Australia.
Malinauskas also highlighted that different state energy profiles, such as Queensland's state-owned generation, made a federal mandate unnecessary. However, all states and territories agreed that data centre operators must construct new generation capacity when connecting to the grid, with energy being the primary consideration.