Queensland, NT Reject AI Datacentre Renewables Mandate as Power Use May Hit 10% by 2035
Updated
Updated · The Guardian · Jul 29
Queensland, NT Reject AI Datacentre Renewables Mandate as Power Use May Hit 10% by 2035
3 articles · Updated · The Guardian · Jul 29
Summary
Queensland and the Northern Territory rejected federal plans to force new AI datacentres to match their power use with renewables, calling the proposal underdeveloped and too centralizing.
Canberra said it will press ahead anyway, seeking nationally consistent rules on energy and water use, grid-connection costs and protections so households do not face higher power bills.
S&P Global warned datacentre electricity demand could rise five-fold to 20 terawatt hours by 2034-35—about 10% of Australia’s consumption—while Sydney Water estimates the facilities could use 15% to 20% of the city’s water by 2035.
That pressure is compounded by timing gaps: datacentres can be built in 18-24 months, while transmission and renewable projects often take three to five years, a mismatch S&P said could lift wholesale power prices 25%.
The clash heads into an August national cabinet meeting and a September energy ministers’ summit, with Chris Bowen expected to outline the federal roadmap next week.