Data centre power peace breaks out, but will you pay?

A peace agreement has emerged in Australia's ongoing debate over power sources for data centres. The Albanese government has reached an understanding with Queensland and the Northern Territory regarding regulations for the burgeoning data centre sector. Both Queensland and the NT were opposed to the federal government's stringent renewable energy requirements for the $150 billion industry.

Queensland Premier David Crisafulli emphasized that developers should have the freedom to choose their energy mix while adhering to social license, water protection, and community consultation regulations. The state government will assume planning responsibilities from councils to ensure compliance with these guidelines. Chief Minister Lia Finocchiaro of the NT highlighted the region's gas reserves to secure similar flexibility.

Although the deal does not explicitly ban gas, it allows for the use of both gas and coal within the jurisdiction. Critics argue that gas is expensive and, while it may be faster to build than coal, it remains slower and more costly than renewable energy sources. However, proponents argue that including development, approvals, financing, and grid connection, renewables combined with gas peakers offer the most compelling solution.