A coalition of industry, investor, climate, legal and public interest groups is calling for national rules requiring data centres to “Bring Your Own New Clean Energy”, arguing that without stronger standards the rapid expansion of AI-driven infrastructure could raise electricity costs for households and businesses and prolong the use of coal and gas generation.
In a joint statement issued as the federal government drafts national AI laws, the groups said the rules should apply to all data centres in the development pipeline, including projects in the Northern Territory and Queensland. They also called for requirements that genuinely new renewable generation be brought online within three years of a facility starting operations, and for limits on the use of offsets.
The organisations said they support the government’s proposal to make data centres net generators of renewable power, but warned the framework should not be weakened in a way that accelerates expansion without sufficient new clean energy investment.
Quotes Attributable to Carbon Zero Initiative, CZI, Strategy and Partnerships Lead, Alexander Hoysted:
“Data centres should bring their own new clean energy, which means new wind, solar and storage built because a new data centre exists. If the government’s rules mean operators buy their way out with old certificates, households end up holding the power bill. The government should ensure these loopholes are closed when the bill lands.”
Quotes Attributable to Climate Council, CEO, Amanda McKenzie:
“Our power bills and climate don’t care when a data centre was approved. If data centres want to party in Australia, they need to BYO new clean energy within three years of setting up – including facilities already in the pipeline. Otherwise, millions of tonnes of climate pollution will gatecrash, and our communities will be left with the bill and the mess.”
Quotes Attributable to Climate Energy Finance, Director, Tim Buckley:
“We see it as critical that we get alignment of government policies to drive new investment in zero emissions industries of the future, and advocate for the removal of inefficient, counter-productive fossil fuel subsidies that undermine Australia’s energy security. Data centres need to be ineligible for the Fuel Tax Credit scheme to avoid incentivising onsite diesel and to increase the relative incentive for BESS and other non-carbon firming technologies, including rewarding demand response management by the data centre itself. Data centres can enhance grid reliability and accelerate decarbonisation, or undermine both. We need BYONCE legislated, soonest!”
Quotes Attributable to Environmental Defenders Office, CEO, Jo Shulman:
“The federal government must not miss this opportunity to ensure robust, environmentally sustainable, and enforceable regulation when it comes to data centres.
“We need a clear national framework for smart and safe development that puts local communities and environmental protection front and centre.
“This must include requiring data centres to match their energy demands with additional renewable energy generation, ensuring the sector contributes to—not compromises—Australia’s clean energy transition.”
Quote Attributable to Dan Ilic from GetUp!
“We can’t repeat the mistakes of past resources booms — If Anthropic wants it they need to put a ring on it”
Quotes Attributable to Nature Conservation Council NSW (NCC), CEO Jacqui Mumford:
“NSW is facing an onslaught of energy-hungry data centre proposals that threaten communities and nature with noise, light and air pollution.
“The NSW government has not ruled out data centres being powered by fossil fuels.
Strong national rules are needed to ensure data centres are powered by new renewable energy, not coal or gas, and to keep coal fired power station closures on track.”
Quotes Attributable To Smart Energy Council (SEC), CEO, David McElrea:
“Powering the AI boom with gas and coal will lock in higher power bills for everyone. Data centres must fund the clean storage and firming capacity Australia needs, rather than leeching off fossil fuel subsidies like the $12 billion diesel fuel tax credit.”
“The expectations are clear: data centres must bring their own new wind, solar, and storage, driving the nation’s shift to clean, reliable and secure energy forward, instead of slowing it down.”
Quotes Attributable To WWF-Australia, Senior Manager, Energy Transition, Rob Law:
“Australia has a narrow window to rapidly reduce climate pollution and transform its economy to one powered by renewables. Strong standards need to ensure data centres meet their demand with at least 100% additional renewable energy. It matters that it’s at least 100% and it matters that it’s additional to what the rest of the economy needs.”
Quotes Attributable To Responsible Investment Association Australasia (RIAA), CEO, Estelle Parker:
“Data centres may be marketed as the engine room of the AI economy, but investors will be left carrying the risk if their rapid growth strains Australia’s electricity grid, water supplies and community trust. Government must ensure new facilities bring additional renewable energy, pay their fair share of infrastructure costs and transparently manage impacts on nature, Country and local communities. Without clear national safeguards, today’s AI boom could become tomorrow’s stranded assets and social-licence crisis.”
ENDS
