Australia to force renewable data centre rules

• Canberra plans legislation requiring all new data centres to add renewable energy capacity regardless of state opposition.
• Queensland and the Northern Territory reject compulsory green power rules to protect household energy bills.
• The Labor administration stated the measure will prevent a regional regulatory compromise that compromises grid reliability.

The federal government is preparing national legislation to force new data centres to source additional renewable energy capacity despite opposition from two jurisdictions.

Queensland and the Northern Territory have resisted the proposal, preferring a market-led approach to avoid driving up electricity bills for households.

"While I always prefer to work with my state and territory colleagues, the Commonwealth will not be standing by and letting a race to the bottom of states falling over themselves to attract data centres at the cost of household bills, reliability or emissions," said Climate Change and Energy Minister Chris Bowen.

Under the draft rules, facility operators must match electricity demand with new green generation, minimise water consumption, and fund required transmission infrastructure.

Following the announcement, the federal government confirmed it will debate the proposed national energy framework at the National Cabinet.

The proposed national standards aim to establish a uniform baseline regulatory framework across all Australian states and territories.

State and federal leaders are expected to review the mandatory infrastructure obligations during upcoming intergovernmental discussions.