Queensland and NT reject Labor's push to ensure that power-hungry AI datacentres use renewable energy
Guardian AU Business
β’Wed, 29 Jul 2026 03:19:17 GMT
π° What Happened
Queensland and the Northern Territory rejected federal Labor's plan to mandate renewable energy use for AI datacentres, calling it an overreach. Labor says it will proceed regardless as S&P Global warns datacentre power use could rise five-fold by 2035.
π The Backstory
AI datacentres consume enormous amounts of electricity, creating tension between the tech industry's growth and climate goals. Australia is seeing a boom in datacentre construction as global tech companies expand their AI infrastructure. The federal government has been trying to establish consistent national regulations.
π― Why It Matters
How Australia powers its AI datacentres will have significant implications for its renewable energy targets, electricity prices for households, and its competitiveness in attracting AI infrastructure investment. The federal-state dispute could delay much-needed regulatory clarity.
Queensland and the Northern Territory rejected federal Labor's plan to mandate renewable energy use for AI datacentres, calling it an overreach. Labor says it will proceed regardless as S&P Global warns datacentre power use could rise five-fold by 2035.
AI datacentres consume enormous amounts of electricity, creating tension between the tech industry's growth and climate goals. Australia is seeing a boom in datacentre construction as global tech companies expand their AI infrastructure. The federal government has been trying to establish consistent national regulations.
How Australia powers its AI datacentres will have significant implications for its renewable energy targets, electricity prices for households, and its competitiveness in attracting AI infrastructure investment. The federal-state dispute could delay much-needed regulatory clarity.