NT environmental regulator has 'low confidence' in plan for outback data centre

The Northern Territory's environmental regulator, the Environment Protection Authority (EPA), has expressed low confidence in the environmental planning for a proposed massive data centre project in the outback. Energy North, the company seeking to build the data centre, has applied for environmental approvals to construct a hyperscale facility on Murranji cattle station in the Barkly Region.

The project, known as Project Ares, would extract up to 4 billion litres of groundwater annually and necessitate significant on-site power infrastructure.

The NT EPA has listed 10 potential impacts on the environment, including air, water, people, and land, and stated that there is insufficient information on most environmental aspects. The regulator is concerned that the company's environmental measures may not be effective. Energy North has not yet been rejected for the application, but the NT EPA will require the company to submit more information in an environmental impact statement (EIS) and will consult further with the public and the federal government before making a decision.

The Albanese government is working on national data centre standards, which could be legislated in 2027. The new laws may mandate the use of recycled water and require AI companies to reserve computing capacity for Australian businesses and researchers. The NT EPA acknowledged this and said the approvals process could be affected by the new laws. Environment Centre NT's Bree Ahrens welcomed the NT EPA's decision, stating that no development should proceed until robust national laws are in place.