Federal Labor's new national laws on data centre power supply will not include carve-outs for Queensland and the Northern Territory, Energy Minister Chris Bowen confirmed on Friday. States wishing to use coal and gas will need to present their case to the national regulator.
Mr Bowen told Guardian Australia that the only concession agreed at Wednesday's national cabinet meeting was that existing coal and gas supply could be used if it could be demonstrated to be cheaper than renewables. He described proving a non-renewables option is cheaper as "a very hard thing to do."
Prime Minister Anthony Albanese had previously indicated that new national rules, expected to be debated in federal parliament next year, would mandate renewable energy use and prevent data centres from increasing prices for homes and businesses. New developments would be required to contribute positively to the country’s energy transition.
Following the meeting, Northern Territory Chief Minister Lia Finocchiaro and Queensland Premier David Crisafulli both claimed successes. However, Mr Bowen stated on Friday that there would be no wholesale carve-out for any state or territory, reiterating that the Commonwealth will legislate nationally consistent standards requiring 100% renewables, backed by firming, in every state and territory.
The Australian Energy Market Operator has projected a seven-fold increase in data centre power use over the next decade. Mr Bowen previously indicated the federal government would use constitutional powers to override state governments opposing new national rules on data centres.