Energy Minister rejects claims of renewable carve-outs for Queensland data centres

The federal government will introduce draft national standards for data centres that require operators to source 100 % renewable electricity, backed by battery storage or gas firming, according to Energy Minister Chris Bowen. He dismissed reports that Queensland and the Northern Territory secured exemptions, stating any state-owned electricity company must apply to the Commonwealth and meet a stringent cost-benefit test to use coal or gas.

While premiers signed off on the standards, the agreement included a limited flexibility clause for state-owned assets, which was interpreted as a concession to Queensland and the Northern Territory. Bowen emphasized that the Australian Energy Regulator will assess any applications and that the Commonwealth law will apply uniformly across all jurisdictions. He warned that allowing a state-level choice could raise wholesale electricity bills by about 13 %, and that data centres are major power consumers whose energy source must be carefully regulated. A draft bill is expected before legislation is introduced early next year.