Australian Minister Denies Softer Stance on Data Center Power
(Bloomberg) -- Australia’s Energy Minister Chris Bowen has rejected suggestions the government is softening requirements that future data center developments be powered by renewable energy.
The government this week struck a deal with regional leaders that appeared to allow Queensland and Northern Territory to avoid the renewables requirement. The two states had opposed the original proposal, with Queensland arguing it should choose how to supply electricity to data centers as it owns the whole power system.
“There will be nationally consistent standards which apply to Queensland and the Northern Territory,” Bowen told reporters Saturday in Sydney. “There is no carve out for Queensland or the Northern Territory. There is no card that they can play to say we don’t have to comply with these rules.”
Bowen said Queensland will be able to apply for an exemption if the state thinks it can provide data center energy cheaper than renewables but the decision on the exemption will be made by the federal government not the state.
The government’s concern is that the huge power demands from data centers will drive up prices, he said.
“Our modeling is very clear that if you had an open slather, let-her-rip approach where data centers could do whatever they want in Queensland, wholesale prices would go up 13%,” he said. “We’re not going to let Queensland lead a race to the bottom, that remains the case.”
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